Emaar and Dubai Properties in talks with banks for loan financing


By Davide Barbuscia

DUBAI, Dec 7 (Reuters) - Dubai'sEmaar Properties, builder of the world's tallest tower, is in discussions with banks to obtain loan facilities in partnership with Dubai Properties, another major developer, sources familiar with the matter said.

Discussions are taking place on a bilateral basis with individual banks for a financing package which, according to one of the sources, could be as large as around 4 billion dirhams ($1.01 billion).

Emaar declined to comment while Dubai Properties, a unit of Dubai Holding, the investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, did not respond to a request for comment. Emaar would raise the loan through a special purpose vehicle with Dubai Properties.

Emaar, the largest listed developer by market capitalisation in the Middle East and North Africa, develops residential properties, hotels, entertainment venues and malls.

Its latest financing was a $1.3 billion, five-year loan secured in September, $1.08 billion of which has been drawn down, according to a company presentation.

This article appears in: World Markets , Stocks

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