Dubai’s Emaar Properties, the emirate’s largest real estate developer, has put up its crown jewel asset – Dubai Mall – to secure $1 billion of lending to help refinance upcoming debt amid difficult funding conditions.

The two-tranche facility, which consists of both Shariah-compliant and conventional funding, is split between a five-year tranche and an eight-year amortizing loan and is backed by its mammoth Dubai Mall, the company said in a statement Monday.

Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered are providing the finance, which carries a margin of 350 basis points and will be initially used to repay an existing $300 million facility taken out in 2010, Emaar said.

“These days no one will lend without collateral,” said a real estate analyst in Abu Dhabi who did not wish to be identified. “They are getting a favorable rate as they put this asset as collateral.”

Dubai Mall, one of the world’s largest, with an indoor Olympic-sized ice skating rink and a two-story high aquarium, was the last debt-free asset which Emaar had on its books, he said.

The use of the mall was the key behind getting the deal done, a banker with knowledge of the proceedings said. “Emaar is a strong credit, and Dubai Mall is its crown jewel,” he added. “There’s so much cash coming out of it, which provides the whole rationale for the deal.”

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