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Dubai’s biggest developer seeks review of loan terms after positive S&P rating

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July 25
1:12 PM 2013

Emaar Properties, developer of the world's biggest shopping mall, requested for an adjustment of the terms for its AED 3.6 billion (about US $980 million) after the positive evaluation of its ability to settle its debts.

On April 25 this year, Standard & Poor's elevated Emaar's rating to BB+ after noting that new projects and recurring revenues are expected to improve its earnings.

With this, Emaar requested its banking partners "to review the terms" of its loans, a statement emailed to media outlets revealed. The statement also noted that the request "follows our improved credit profile."

Reports said that Emaar is looking to slash the interest rate of the loan to 175 basis points from the 350 basis points offered by London interbank. The company, however, did not confirm the report.

The company acquired the loan in December 2011 using Dubai Mall as the collateral. Emaar planned to utilize part of the loan to pay off the US $300 million debt taken in 2010.

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