Dubai: Emaar Properties, the UAE's biggest listed real estate developer, said on Wednesday that the company's board has agreed to issue convertible bonds worth $375 million (Dh1.37 billion).
In a filing to the Dubai Financial Market on Wednesday, the company said it had established a wholly owned subsidiary, Pyrus Limited, in Cayman Islands, that would issue a $375 million bond with the option to increase the size of the issue by another $125 million.
The convertible notes would be listed on the London and Luxembourg stock exchanges. Analysts said through this bond issue Emaar could refinance short-term debt obligations and fund potential writedowns relating to Amlak Finance, the Islamic mortgage finance company in which Emaar holds 48 per cent stake.
The convertible bond, which matures in December 2015, has a coupon of 7.25 per cent to 8.25 per cent, according to bankers involved in the transaction.