The Shareholders of Emaar Properties PJSC (Emaar) approved the issuance of the company's US$500 million Convertible Notes at an extraordinary general meeting (EGM) held today in Dubai.
The US$500 million of Convertible Notes, due in 2015, are intended to contribute to the conversion of Emaar's short term liabilities into long term debt. The Convertible Notes had received overwhelming response from investors with demand in excess of US$3 billion.
Mr Mohamed Alabbar, Chairman of Emaar, said: "The approval of the US$500 million Convertible Notes issue will further strengthen our ability to expand to key geographic markets and develop the fast-emerging role of our business subsidiaries. The Convertible Notes issue enhances Emaar's reputation, being the first real estate company in the region to issue a good-sized capital market instrument resulting in improved shareholders' value and increased confidence amongst lending banks and rating agencies."
He added: "We are thankful to our shareholders for their trust in our growth strategies aimed at adding long-term and sustained value. Emaar has successfully addressed the challenges of the global financial slowdown, and in this new era of growth, our focus will be on delivering world-class property assets."
Emaar will make an application for the Convertible Notes to be listed on the Luxembourg Stock Exchange and to be admitted to trading on the Euro MTF market. Settlement is expected to take place on or around December 20, 2010. J.P. Morgan, The Royal Bank of Scotland and Standard Chartered Bank are acting as joint bookrunners for the offering.
The EGM also authorised the increase(s) in capital which may be required from time to time in connection with any conversion of the Convertible Notes into shares in Emaar and to authorise certain amendments to the Articles of Association of Emaar.
Emaar recently announced its third-quarter results, recording net operating profits of AED 2.343 billion (US$638 million) and revenue of AED 8.320 billion (US$2.265 billion) during the first nine months of 2010.