Emaar Mall Unit Hires Banks for Sukuk Before $2.45 Billion IPO

Emaar Malls Group LLC, owner of one of the world’s biggest shopping malls, plans a debut sale of Islamic bonds after raising $1.5 billion from a loan last month.

The company will hold meetings with fixed-income investors in Asia, Europe and the Middle East from June 8, it said in a statement to the Dubai bourse today. Dubai Islamic Bank PJSC (DIB), Emirates NBD Capital Ltd., First Gulf Bank PJSC (FGB), Mashreqbank PSC (MASQ), Morgan Stanley, National Bank of Abu Dhabi PJSC, Noor Bank and Standard Chartered Plc will arrange the meetings and a dollar-denominated Reg-S sukuk may follow, Emaar said.

Emaar Malls, owned by Emaar Properties PJSC (EMAAR), the developer of the world’s tallest skyscraper in Dubai, has the second-lowest investment grade rating from Moody’s Investors Service. The rating reflects the company’s stable recurring cash flows and is underpinned by the success of the Dubai Mall, a popular tourist attraction, Moody’s said in a note on June 2.

Emaar, controlled by the Dubai government, plans to raise as much as $2.45 billion from the IPO of the retail unit. The funds will be primarily distributed through dividends to shareholders. The developer plans to list 25 percent of the unit on the Dubai Financial Market, it said May 26.

Emaar Malls raised $1.5 billion from an Islamic financing facility at a price of 1.75 percent over the London interbank offered rate, it said in a statement to the bourse on June 1.

Emaar’s $500 million of Islamic bonds due July 2019 traded at a yield of 3.55 percent at 11:22 a.m. in Dubai, according to data compiled by Bloomberg. The yield has dropped 99 basis points, or 0.99 of a percentage point, this year, according to the data. Emaar shares gained 1 percent to 10.05 dirhams.

The SEC regulation, known as Reg S, exempts overseas offerings from registration requirements under the Securities Act of 1933.

To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net; Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net Dale Crofts

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