UAE. Dubai's Emaar Properties, builder of the world's tallest tower, has signed a US$1 billion financing which is secured against its mammoth Dubai Mall, the developer said in a statement on Monday.
The two-tranche facility, which consists of both sharia-compliant and conventional funding, is split between a five-year tranche and an eight-year amortising loan and carries a margin of 350 basis points.
Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered have providing the finance, which will be initially used to repay an existing US$300 million facility taken out in 2010, Emaar said.
The new facility will benefit the company by extending its debt maturity profile and reducing the cost of its borrowing, the statement added.
Dubai Mall is one of the world's largest malls, with an indoor Olympic-sized ice skating rink and a two-storey high aquarium.
Sources told Reuters in September that the developer was in the process of raising around US$800 million through a two-tranche loan which was backed by four malls, including Dubai Mall, one of the world's largest shopping centres.