Dubai – Mubasher: Dubai’s Emaar Properties and state-owned developer Nakheel Properties have shelved US denominated bonds, people familiar with the matter said.
Emaar said that it had pushed back a planned bond issue due to rising interest rates, Gulf Business reported on Monday.
Both real estate giants had planned dollar-denominated Islamic bonds, and would have had to pay a yield premium in a bid to attract enough investors due to concerns about the decline of Dubai’s property prices and emerging market volatility, according to sources.
“The bond was considered more than a year ago and was put on hold due to increasing interest rates. The decision was not based on market conditions,” an Emaar spokesperson said.
On the other hand, JPMorgan Chase & Co. said on Monday that GCC nations’ bond sales are expected to nudge down this year, compared to $78 billion notes a year earlier as issuers become more cautious on the back of growing interest rates and market volatility.