Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Arab Emirates
  4. Dubai Financial Market
  5. Emaar Properties PJSC
  6. News
  7. Summary
    EMAAR   AEE000301011


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Emaar Properties : Offshore Centers Display Busy International Sukuk Markets

08/19/2021 | 02:09am EST

Over the past few months, banks, companies and sovereigns are taking advantage of low interest rates by vigorously tapping the Sukuk markets in an attempt to address gaps in their finances caused by the impact of COVID-19 and the drop in oil prices.

Some GCC-based issuers, such as Dubai Islamic Bank (DIB) and Emaar Properties, returned to the international Sukuk markets by drawing down under their existing Sukuk programs which feature an offshore issuing vehicle.

Very recently, Emaar Properties issued US$500 million in Sukuk certificates due in 2031 under its US$2 billion program through Emaar Sukuk, its Cayman Islands incorporated issuer. The offering was more than six times oversubscribed and thus priced lower than initially expected at 3.7%.

Last month, DIB floated a landmark US$1 billion five-year senior Sukuk facility on Euronext Dublin and NASDAQ Dubai. The Sukuk facility was issued through DIB Sukuk, an orphan company domiciled in the Cayman Islands, under its US$7.5 billion Sukuk issuance program. DIB's press release on the transaction revealed that the profit rate of 1.96% payable on the Sukuk is the lowest pricing that DIB has ever achieved on its Sukuk issuances.

Earlier in April, DIB priced another Sukuk issuance, this time additional Tier 1 capital certificates, at a record low level. The US$500 million additional Tier 1 securities were launched at 3.38%, establishing the lowest rate for perpetual debt out of the Gulf region. The prospectus for the transaction reveals that the issuing vehicle, DIB Tier 1 Sukuk (5), was set up as an orphan company in the Cayman Islands with its shares held on charitable trust by a licensed independent trust company, MaplesFS.

Several Kuwait-based banks launched stand-alone perpetual Sukuk issuances this year. Also in April, Boubyan Bank floated US$500 million-worth of Tier 1 capital certificates on Euronext Dublin. The issuance was priced at 3.95% and was more than 2.5 times oversubscribed.

At the same time, Boubyan Bank made a tender offer in respect of the US$250 million Tier 1 capital certificates it previously issued in 2016 through a DIFC SPV, Boubyan Tier 1 Capital SPC.

More recently in June, each of Kuwait's Ahli United Bank (AUB) and Kuwait Finance House (KFH) floated Tier 1 capital certificates, the former being dual-listed on Euronext Dublin and NASDAQ Dubai and the latter listed on the main market of the London Stock Exchange.

Kuwait's AUB's issuance of US$600 million-worth of Tier 1 capital certificates was priced at 3.88% and was three times oversubscribed. Part of the proceeds of that issuance were used to purchase (through a simultaneous tender offer) AUB's existing US$200 million-worth of capital certificates previously issued in 2016 through a Cayman Islands exempted company, Ahli United Sukuk.

KFH's issuance of US$750 million-worth of Tier 1 capital certificates was priced at 3.6% and its orderbook received more than US$1.9 million in subscriptions.

The prospectus states that the proceeds will be used by the bank to support its Tier 1 capital for the purpose of maintaining its capital adequacy and for its general corporate purposes.

A common thread between these three Kuwaiti banks' perpetual Sukuk transactions is the use of an orphan issuing vehicle established in the Cayman Islands.

This article was first published in IFN Volume 18 Issue 33 dated the 11th August 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Ms Manuela Belmontes
Maples Group
5th Floor, The Exchange Building
Dubai International Financial Centre
South Church Street
PO Box 119980
Tel: 9498066
Fax: 9498080
E-mail: Ailbhe.Enright@maples.com
URL: www.maples.com

© Mondaq Ltd, 2021 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source Business Briefing

Stocks mentioned in the article
ChangeLast1st jan.
BOUBYAN BANK K.S.C.P. 0.39% 0.779 End-of-day quote.44.01%
EMAAR PROPERTIES PJSC 1.74% 4.69 End-of-day quote.32.86%
11/22EMAAR PROPERTIES : Notification from the company regarding the completion of merger proced..
11/22EMAAR PROPERTIES : تنويه من الش..
11/22Emaar Properties PJSC completed the acquisition of remaining 15% stake in Emaar Malls P..
11/21EMAAR PROPERTIES : Capital increase and issuance of new shares to Emaar Malls shareholders..
11/21EMAAR PROPERTIES : زيادة رأس ال..
11/15Emaar Founder Plans to Sell 50% of Namshi App to Foreign, Local Investors
11/14Emaar Properties PJSC Reports Earnings Results for the Third Quarter and Nine Months En..
11/14EMAAR PROPERTIES : بيانات مالي..
09/12Dubai's Emaar hires Emirates NBD for sale of e-commerce business Namshi - sources
09/12Dubai's Emaar hires Emirates NBD for sale of e-commerce business Namshi - sources
More news
Analyst Recommendations on EMAAR PROPERTIES PJSC
More recommendations
Sales 2021 24 461 M 6 661 M 6 661 M
Net income 2021 3 452 M 940 M 940 M
Net Debt 2021 13 045 M 3 552 M 3 552 M
P/E ratio 2021 10,3x
Yield 2021 2,64%
Capitalization 38 363 M 10 444 M 10 446 M
EV / Sales 2021 2,10x
EV / Sales 2022 1,99x
Nbr of Employees -
Free-Float 85,0%
Duration : Period :
Emaar Properties PJSC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EMAAR PROPERTIES PJSC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 8
Last Close Price 4,69 AED
Average target price 5,74 AED
Spread / Average Target 22,4%
EPS Revisions
Managers and Directors
Amit Jain Group Chief Executive Officer
Hesham Heikal Chief Financial Officer
Mohammed bin Ali Rashed Al-Abbar Chairman
Binoo Joseph Head-Technology
Ahmed bin Jamal bin Hassan Jawa Independent Non-Executive Director