Emaar seeks $800 mln loan guaranteed with shopping malls

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Sources revealed Emaar Properties is seeking an $800 million two-tranche loan aiming to provide guarantees with four of its shopping malls, including The Dubai Mall.

The facility consists of a five-year tranche and an eight-year amortizing loan. According to bankers, it  is being arranged by Dubai Islamic Bank , National Bank of Abu Dhabi and Standard Chartered.

Dubai Mall, Dubai Marina Mall and the Gold and Diamond Park shopping centre are mentioned on the list with securities.

However, Emaar emailed a statement to Reuters claiming the information was “categorically incorrect” and hinted that refinancing debt or other form of financing may be disclosed at the right time.

The company’s second-quarter net profit plunged 69 percent as it handed over fewer homes and wrote off its investments in Dubai Bank, according to a developer’s statement.

Standard & Poor’s recently raised its outlook on Emaar from negative to stable on account of recurring cash flow generation and the improving performance of company’s hospitality assets. It affirmed Emaar’s ‘BB’ rating at the same time.

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