Emirates REIT Proposing Amendment to Terms of USD 400 Million Sukuk

Dubai-listed, Shariah-compliant real estate investment trust (REIT), Emirates REIT, plans to offer holders of its USD 400 million Sukuk the option to exchange their notes for new instruments. According to the proposal, unsecured Sukuk would be exchanged for secured bonds. The company also seeks to extend its credit maturity to improve its balance sheet following adverse impacts of COVID-19. The existing Sukuk mature in 2022, whilst the new instrument would mature in 2024. Emirates REIT issued USD 400 million Sukuk Murabahah on the 12th of December 2017 at a profit rate of 5.125% with a maturity of five years. 

Why it Matters?

Dubai's real estate sector has been sluggish for years due to chronic oversupply coupled with weak economic growth, and COVID-1...