Beijing’s new mega airport enlists Dubai’s Emaar for $11 bln project

Beijing is set to open an eye-catching multi-billion dollar airport resembling a massive shining starfish, to accommodate soaring air traffic in China and celebrate the Communist government's 70th anniversary in power. (AFP)
Updated 22 July 2019

Beijing’s new mega airport enlists Dubai’s Emaar for $11 bln project

  • The agreement was signed during a state visit by UAE Crown Prince Sheikh Mohamed bin Zayed to China
  • Emaar will open two offices in Beijing and Shanghai

DUBAI: Dubai’s largest listed developer Emaar Properties has signed an agreement to help deliver an $11 billion project at the site of Beijing’s new mega airport, Emirati state news agency WAM reported on Monday.
WAM said Emaar had signed the deal with Beijing Daxing International Airport and that the project, which is expected to take 10 years, included residential and leisure facilities.
Emaar Properties did not immediately respond to requests for comment.
The value of the project includes the five square kilometers of land at the airport, WAM reported.
Beijing Daxing International Airport is due to open in September and will be able to handle 72 million passengers a year by 2025.
The agreement was signed during a state visit by Emirati crown prince Sheikh Mohamed bin Zayed to China.
Sheikh Mohamed has met with China’s President Xi Jinping and other officials, according to Emirati state media.
Emaar signed a preliminary agreement with Beijing New Aeropolis Holdings in May to jointly develop commercial, residential, and leisure facilities at the new airport.
In December, Emaar said it had started business development operations in China and would open two offices in Beijing and Shanghai.


Indonesia sells Asia’s first 50-year dollar bond to fight pandemic

Updated 07 April 2020

Indonesia sells Asia’s first 50-year dollar bond to fight pandemic

  • Indonesia will use the cash raised to partially ‘fund its COVID-19 relief and recovery efforts’
  • The deal was carried out virtually, with bankers working on the transaction unable to travel to Jakarta

HONG KONG: Indonesia has raised $4.3 billion, including the longest-dated US dollar bond ever issued by an Asian nation, to help the government fund its battle against coronavirus, according to a term sheet reviewed by Reuters.
The deal was finalized in the United States on Monday and sold in maturities of 10.5 years and 30.5 years, worth $1.65 billion each, with a 50-year tranche worth $1 billion.
It was Indonesia’s largest-ever bond, according to the term-sheet which showed Indonesia will use the cash raised to partially “fund its COVID-19 relief and recovery efforts.”
The decision to sell 50-year bonds by the government came after initial conversations with potential investors found there was appetite for such a tenor, according to two sources with direct knowledge of the matter.
Asian life insurers, especially some based in Taiwan as well as US fund managers were the largest investors, the sources said. The sources could not be named because they were not authorized to speak to media.
“The mood in the market is starting to feel better, investors are starting to think we could be moving toward the end of the tunnel,” a banker working on the deal said.
The deal was carried out virtually, with bankers working on the transaction unable to travel to Jakarta which would have been normal practice.
Bankers working on the deal said the international travel ban put in place to control the coronavirus pandemic made the transaction more efficient to negotiate.
However, for syndicate bankers selling the deal to investors it was logistically more difficult because trading rooms in the major banks have been scaled back.
Indonesia’s coronavirus cases stood at 2,491 on Monday, with 209 confirmed deaths — the highest number of fatalities in Asia outside China.
Fifty-year bond deals priced in local currencies have been held in the past, Refinitiv data showed. South Korea raised 1.1 trillion won through a 50-year bond in September 2016 that at the time was worth $1 billion.
Indonesia’s government said on Monday it had raised its estimated 2020 net bond issuance to 549.6 trillion rupiah ($33.55 billion) to cover the country’s widening deficit.
It also listed a plan for sales of 449.9 trillion-rupiah ($27.47 billion) worth of “pandemic bonds” to cover additional spending for the COVID-19 response.
Citigroup, Deutsche Bank, Goldman Sachs, HSBC and Standard Chartered were the joint book runners for the deal, the term-sheet showed.