Emaar is the developer behind the Dubai Mall as well as the Burj Khalifa, the world’s tallest tower. (File photo: Shutterstock)
Dubai’s Emaar Properties says malls unit raises $1.5bn Islamic loan
Funds said to be provided by five UAE-based banks
Dubai’s Emaar Properties said on Sunday that its Emaar Malls Group has raised a $1.5 billion sharia-compliant loan through a consortium of local banks to optimize its capital structure ahead of a planned listing of the unit.
Emaar said the loan is repayable in seven years and carries a profit rate of 1.75 percent over the London interbank offered rate (Libor).
The funds are provided on an equal basis by three Dubai lenders - Dubai Islamic Bank, Mashreq and Noor Bank - and two from Abu Dhabi - First Gulf Bank and National Bank of Abu Dhabi, Reuters reported on Thursday.
Emaar did not specify which banks were involved in the statement.
The developer plans to list up to 25 percent of Emaar Malls Group on the Dubai bourse at a later date in a flotation that is expected to be valued at around 8 to 9 billion dirhams ($2.18-$2.45 billion), Emaar said last week.
