Emirates REIT Pulls the Plug on Its Sukuk Extension Proposal 

United Arab Emirates’-based Emirates REIT has withdrawn its plan to amend the terms of its USD 400 million Sukuk. On the 18th of May 2021, Emirates REIT announced its plans to exchange unsecured Sukuk for new Sukuk, whilst extending the credit maturity to 2024 from 2022. 

Why it Matters?

Forceful opposition from investors resulted in only 57% of the investor base in favour of the proposal, falling short of the 75% required to push the proposal through. Investors stated that Emirates REIT should re-look at its management expenses, with majority of the Sukukholders calling for transparency on the operational, liquidity and financial position of Emirates REIT, on all ongoing breaches to transaction documents, litigation, regulatory investigations...