On 29 September, 2010 Emaar Properties PJSC announced the placement and final terms of its offering of US$450 million of Convertible Notes due 2015 with a potential maximum size of US$500 million if the over-allotment option is exercised. The Notes are expected to be issued by the Company’s wholly-owned subsidiary Pyrus Limited (“Pyrus”) and will be guaranteed by the Company.
The offering was heavily over-subscribed, with total demand generated in excess of US$ 3 billion based on c.250 orders from investors globally. The base size of the offering was fully subscribed within an hour of launch and the order book was closed within three hours of launch. The issue was upsized from its initial US$375 million base size due to strong investor demand.
The success of this offering is a clear endorsement by investors worldwide of Emaar’s strategy and financial discipline. The Company intends to use the net proceeds of the offering to refinance short term liabilities and for general corporate purposes. The successful completion of this offering will allow Emaar to reduce its reliance on short term funding and to diversify its sources of funding.
Mr Mohamed Alabbar, the Chairman of Emaar, said: “We are delighted by the overwhelming interest that this offering has generated from investors across the world. The strength of demand from high quality investors is a clear and unequivocal endorsement of Emaar’s strategic initiatives, our emphasis on strengthening our core competencies and our efforts to further strengthen our financial fundamentals. The successful outcome of this offering of convertible bonds, despite the challenges faced by global financial markets, is an important step in Emaar‘s continued focus on its growth strategy through revenue diversification. ”
This communication is not an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. Neither Pyrus nor Emaar has registered, and does not intend to register, securities in any of these jurisdictions and does not intend to conduct a public offering of securities in any of these jurisdictions. In particular, no securities of Pyrus or Emaar have been nor will be registered under the U.S. Securities Act of 1933 (the "Securities Act"), and such securities may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable State securities laws.
J.P. Morgan, The Royal Bank of Scotland and Standard Chartered Bank are acting as joint bookrunners for the offering.
This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom; (ii) persons within the United Kingdom who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); and (iii) persons within the United Kingdom who are high net worth entities and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
The joint bookrunners are acting on behalf of the Company and Pyrus and no one else in connection with the Notes and will not be responsible to any other person for providing the protections afforded to clients of the joint bookrunners or for providing advice in relation to the securities.