Wednesday, 26 January 2011 at 14:35, Reuters, Dubai
Emaar Properties, builder of the world's tallest building, plans to issue a benchmark dollar-denominated bond as part its $2 billion Islamic bond programme, according to a source familiar with the matter.
The pricing of the five-and-a-half year Islamic bond or sukuk, is expected to be on Thursday, a document from the source said.
Benchmark bonds are typically at least $500 million in size.
Emaar picked HSBC, RBS and Standard Chartered to arrange fixed income meetings ahead of a possible bond issue, the developer said last week.
The meetings for the proposed bond issue began on Jan 21.
The property market in the United Arab Emirates suffered in the wake of the global financial crisis as developers overstretched themselves in the pursuit of ambitious projects.
Dubai's ruler has a 31 per cent stake in Emaar which built the Burj Khalifa. The company issued a five-year $500 million convertible bond last year with coupon of 7.5 per cent to refinance short term liabilities.
Emaar shares were up 0.6 per cent on the Dubai bourse Wednesday at 0950 GMT.
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