Dubai real estate major Emaar hires banks for dollar sukuk sale, say sources

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Dubai real estate company Emaar Properties has hired banks for issuance of US dollar-denominated Islamic bonds, or sukuk, as soon as next week, two sources close to the matter said without disclosing how much it aims to raise.

The builder of the world’s tallest building, Dubai’s Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.

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Emaar did not immediately respond to a Reuters request for comment.

S&P Global Ratings downgraded Emaar to a BB+ “junk” rating last July as the real estate and retail sectors were slammed by
the COVID-19 pandemic and related restrictions.

The 10-year sukuk issued in 2019 at a rate of 3.875 percent tradedat 101.3 cents on the dollar on Wednesday, data from Refinitiv’s Tradeweb showed.

E maar, which is 29.22 percent owned by state fund Investment Corporation of Dubai, last month reported an 8 percent rise in
first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was “comparable” with pre-pandemic results in 2019.

The company and its subsidiaries have outstanding debt of $817.25 million, Refinitiv data shows.

Read more: Dubai’s Emaar Properties to merge with Malls business amid COVID-19 economic fallout

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