International Finance
Islamic Banking

Emaar’s 10-year sukuk to generate 3.9% annual return

The sukuk is part of Emaar’s $2 billion trust certificate issuance programme

Emaar Properties has signed the final terms with lenders on sukuk issuance worth $500 million. According to the company, the 10 year sukuk will generate an annual return of 3.9 percent. 

The sukuk is part of Emaar’s $2 billion trust certificate issuance programme. As part of the programme, the company has planned investor meetings in Singapore, Hong Kong, and London earlier this month.  

It has appointed banks to arrange the sukuk issuance, which may be subject to market conditions. 

The local media reported that Standard Chartered is appointed as a sole global coordinator for the issuance programme. Local banks such as Dubai Islamic Bank, Emirates NBD,  First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank, in addition to foreign lender Deutsche Bank will jointly manage the process. 

The UAE and the GCC are investing in sukuk market, particularly because of reduced oil price assumptions. However, the challenges in sukuk issuance and geopolitical risks in the Middle East are anticipated to lower sukuk market performance in 2019. 

According to Moody’s, global green sukuk issuance grew by 40 percent to $47.2 billion in the first quarter of 2019. The green sukuk issuance is seen as a necessity to create a favourable regulatory ecosystem for the development of the Islamic economy. 

Emaar Properties ranked 14 among the world’s most powerful real estate brands in 2019. 

The company’s estimate brand value is at $2.7 billion, media reports said. In the first half of 2019, the company generated a net profit of Dh3.11 billion and its revenue reached Dh11.57 billion. 

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