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Emaar Malls to issue inaugural US$750 million Sukuk

Emaar Malls Group

Emaar Malls Group

In line with previously announced bank loan and sukuk road shows for the purpose of providing the appropriate capital structure for Emaar Malls Group LLC (rated Baa2 / BBB- by Moody’s and S&P, respectively) in advance of its proposed IPO, Emaar Malls Group successfully priced a US$ 750mn 10-year RegS debut Sukuk with a profit rate of 4.564%, representing 182.5bps over US$ 10-year mid-swaps on Wednesday, 11 June 2014.

The transaction came on the back of an expedited, yet comprehensive, global roadshow covering the key financial centres: London, Singapore, Hong Kong and the UAE. The proposed issuance was very well received by the market, with the order book closing at approximately US$ 5.4bn, representing 7.2x oversubscription.

The pricing of the transaction achieved a balanced distribution, with Middle East accounts allocated 33%, European investors representing 38% of the allocations, and Asian investors picking up the 29% balance.

The success of the transaction effectively highlights the confidence that fixed income investors have displayed with regards to the strength and appeal of the Emaar Malls Group LLC credit story.


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