Dubai's Emaar Properties set for $500m debt offer with 3.7% annual return
10-year debt offer will form part of planned $2b developer intends to tap for new projects
Dubai: Emaar Properties has finalized a 10-year $500 million debt offer, offering investors an annual return of 3.7 per cent. This forms part of the Dubai developer’s planned $2 billion Trust Certificate Issuance Programme, which it plans to use for project build up, including new ones being planned.
It was this week that Emaar held a series of one-on-one meetings and made investor calls to test investor interest in the debt issue. The $500 million offer will be structured as ‘Trust Certificates’ with a 10-year tenor. These certificates will be listed on Nasdaq Dubai.
On the property sales side, Emaar has been testing buyer activity with a set of releases at some of its latest offplan developments, including budget-friendly villas at Dubai South. If all goes according to plan, the developer is aiming for a Dh8 billion EBITDA (earninges before interest, tax, depreciation and amortisation) this year, which would be significant pick up from 2020 doldrums.
In the first five months of 2021, Emaar notched up sales of Dh10.5 billion in Dubai. The wider Dubai property market itself is seeing more frequent daily deals of Dh1 billion plus.