Emirates REIT’s Proposal for Sukuk Extension Not Favoured by Majority Sukukholders 

Real estate investment fund, Emirates REIT, based in Dubai, United Arab Emirates has not received support from the ‘Ad Hoc Group’ (representing over 30% of its large Sukukholders) on its proposal to amend the terms of its USD 400 million Sukuk, according to fund manager Equitativa. 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?

Of the 60% of Sukuk holders who have already cast their vote on this proposal, 75% remain in favour. This means that a 55% majority either have not voted, or remain opposed to the proposition, reflecting the increasing concerns that the investors have with the Sukuk extension. The final date...