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Emaar Properties PJSC successfully executes its second international fixed-income Sukuk offering of US$500 mn

Dubai, UAE; July 12, 2012: Emaar Properties PJSC (“Emaar”), rated Ba3/BB, has successfully priced its second international fixed-income Sukuk offering, raising US$ 500 million via the issuance of trust certificates with a maturity of 7 years at a yield of 6.400%.

Emaar has successfully executed its first public offering since January 2011 through the issuance of a very well-received US$ 500 million Sukuk. The transaction, which was structured as a Sukuk al-Ijarah and issued through a special purpose vehicle (Emaar Sukuk Limited), constitutes the second drawdown under the company’s recently updated US$ 2 billion Trust Certificate Issuance Programme.

Mohamed Alabbar, Chairman, Emaar Properties PJSC, said: "We are delighted that the Emaar Sukuk was well received by the regional and international fixed income investors. The fact that investors have responded so positively to our third transaction in the international debt capital markets is a testament to Emaar's value proposition and the credit standing of the company in the financial markets. The funds raised through the Sukuk will be used to implement our funding strategy and extend our debt maturity profile. The success of this issuance reflects the confidence investors have in our long term strategy and Emaar’s ability to implement it."

This offering follows Emaar’s US$ 500 million Sukuk issuance in 2011 and the US$ 500 million convertible bond executed in 2010. Emaar, one of the leading developers in the region and responsible for iconic landmarks such as Burj Khalifa and The Dubai Mall, is owned 31.22% by the Government of Dubai through Investment Corporation of Dubai. Over recent years, the company has consciously increased the contribution of malls and hospitality segments to its revenues while at the same time growing its international footprint.

Following a series of investor meetings arranged in London, Emaar was able to capitalise on the positive investor feedback, conducive market environment and strong demand for Shariah-compliant offerings to raise US$ 500 million from the international capital markets. Abu Dhabi Islamic Bank, Al Hilal Bank, Barwa Bank, Dubai Islamic Bank PJSC, Emirates NBD Capital, HSBC, Noor Islamic Bank and Standard Chartered Bank acted as joint bookrunners on the offering.

Emaar’s delegation at the investor meetings effectively communicated the credit story of the company and generated substantial interest in the offering. Finally, the company priced a 7-year US$ 500 million Sukuk with a yield of 6.400% (equivalent to a 519.3 bps over 7Y USD Mid-Swaps) on the back of an orderbook of US$ 4,650 million.

Ultimately, the distribution profile was very well balanced, with European investors allocated for 38% of the transaction, while Middle East, Asian and US (offshore) investors accounted for 48%, 13% and 1%, respectively, of the issuance. In terms of investor type, the offering was distributed as follows: 47% for Fund Managers, 40% for Banks, 7% for Private Banks and 6% for others.

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