Dubai’s Emaar Properties said to get $1.5 bln loan

Dubai-listed Emaar Properties has secured a $1.5 billion corporate finance loan from First Abu Dhabi Bank, Reuters reported, citing sources familiar with the matter.

The builder agreed on the loan after holding initial talks with a few lenders for three bilateral loans of $500 million each. It eventually chose to obtain a single loan of $1.5 billion with First Abu Dhabi Bank underwriting the entire amount, the sources said.

The loan has a five-year tenor and pays a margin of 135 basis points over London interbank offered rates (LIBOR), the agency reported. 

In a bourse statement on Sunday, the Burj Khalifa developer said it would discuss “entry into a new financing arrangement with First Abu Dhabi Bank” at its board meeting on Wednesday, Sep. 20. It did not provide any further details.

Emaar will also seek the general assembly’s approval of its plan to list up to 30 percent of its local real estate development business, Emaar Development LLC, it said.

The initial public offering (IPO) will be launched by November, Emaar chairman Mohamed Alabbar said in June.

Bank of America Merrill Lynch (BofAML) and First Abu Dhabi Bank (FAB) are expected to join Goldman Sachs in working on the listing, Reuters reported last month.