Dubai, Asharq Al-Awsat- Global real estate major Emaar Properties has appointed Citigroup as lead manager and sole arranger of its debut US$1 billion Musharaka Islamic syndication. The five-year facility will primarily be used to finance the Emaar’s large-scale international projects and complete its multibillion projects in the UAE.

The syndicated Musharaka facility is the first debt issue for Emaar in terms of size and scope, and will be instrumental in meeting the company’s growth needs in the near future. Moreover, this pioneering transaction is crucial for reinforcing Emaar’s ties with global and regional financial powerhouses. A number of them are joining in as Mandated Lead Arrangers including National Bank of Abu Dhabi, Union National Bank, First Gulf Bank, HSBC, Mashreq Bank, ABN Amro and Royal Bank of Scotland. Furthermore, several other financial institutions are anticipated to participate in the syndication.

“This facility underscores our resolve to achieve our Vision 2010 of becoming one of the most valuable companies in the world through focused expansion and diversification internationally,” said Mr Mohamed Ali Alabbar, Chairman, Emaar Properties. “This medium-term fund is to meet the working capital requirements in developing infrastructure in our key areas of growth – in the UAE and internationally. Emaar’s international growth plans have been effectively charted out to mitigate performance, construction and distribution risks through strategic joint venture partnerships, alliances and acquisitions.”

Mr Alabbar added: “Working with top players in the field of global Islamic finance further enhances our position in the capital markets. Citigroup’s long expertise in this field and unmatched global network match our aspiration for a truly global financial partner with the right distribution capabilities.”