Emaar Seeks to Change Terms on $980 Million Loan Secured by MallZainab Fattah
Emaar Properties PJSC, Dubai’s biggest developer, is seeking to change the terms of a 3.6 billion-dirham ($980 million) loan secured by its Dubai Mall after the company’s credit ratings improved.
Emaar “requested our banking partners to review the terms” of the loan, the builder of the world’s tallest tower said in an e-mailed statement today without being specific. “This follows our improved credit profile.”
The company is seeking to cut the interest rate on the loan to 175 basis points over the London interbank offered rate from 350 bps, MEED reported on July 24. Emaar didn’t confirm those figures or say it seeks a lower rate.
Standard & Poor’s raised Emaar one level to BB+, its highest non-investment, or junk, grade on April 25, saying recurring revenue and new projects will lift income. Emaar’s 2019 Islamic bond yield is poised for the biggest drop in six months, compared with an average rise among its regional peers.
When Emaar obtained the loan in December 2011, using the world’s biggest shopping mall by area as collateral, the company said it would use it to repay a $300 million facility taken in 2010 and draw down the rest in 2012. Half of the Islamic and conventional facility will be repaid in five years, while the rest will be amortized over eight years, it said.