Emaar Picks Standard Chartered Among Lenders for Sukuk Saleby and
Lender among 9 banks that will help first sale in 2 years
Bond deals in the GCC have doubled this year to $39 billion
Emirates NBD PJSC, National Bank of Abu Dhabi PJSC, First Gulf Bank PJSC, Dubai Islamic Bank PJSC, Union National Bank PJSC, Mashreqbank PSC, Noor Bank PJSC and Bahrain’s Bank ABC will also help manage the sale of dollar-denominated securities, Emaar said in a statement to the Dubai bourse on Wednesday. The company will hold investor meetings in Asia, the Middle East and Europe beginning Sept. 4 and Reg S senior, unsecured Islamic notes, known as sukuk, may follow subject to market conditions.
Emaar last sold bonds in June 2014, when its Emaar Malls Group LLC unit raised $750 million from a debut sale of Islamic notes. The developer of the Burj Khalifa in Dubai carries the lowest investment grade rating from both Moody’s Investor Service and S&P Global Ratings, according to data compiled by Bloomberg.
Bond and sukuk sales in the six-nation Gulf Cooperation Council, which includes the two biggest Arab economies of Saudi Arabia and the United Arab Emirates, have doubled this year to $39 billion as governments in Qatar, Abu Dhabi and Oman sold securities to plug budget deficits after revenues wilted with oil prices.
Sharjah Islamic Bank announced plans to sell bonds last week while Dubai’s Emirates Islamic Bank PJSC kicked off sales after the summer on Tuesday by offering a fresh $250 million portion of its 2021 sukuk.
The yield on Emaar Malls’ sukuk maturing 2024 climbed three basis points to 3.5 percent at 4:08 p.m. local time in Dubai. Emaar’s 2019 sukuk yield was two basis point higher at 2.41 percent.
A benchmark-sized issue usually raises at least $500 million.