ENDB REIT Executes Shariah-Compliant Profit Rate Swap with Mashreq Bank on AED 400 Million Facility

ENBD REIT, a Shariah-compliant Dubai real estate investment trust under Emirates NDB Asset Management (ENDBAM), has executed a profit swap with Mashreq Bank on its AED 400 million facility.

The Shariah-compliant transfer will hedge 56% of ENDB REIT’s total outstanding debt and fix the variable Emirates Interbank Offered Rate (EIBOR) from June 2021 to June 2023.

The move comes as part of ENDB REIT’s efforts to mitigate the impact of the COVID-19 pandemic and soft real estate market by maintaining costs at minimal levels. The cost of financing accounted for 47% of ENDB REIT’s total expenses as at 31st of March 2020, and the lowered EIBOR rate is expected to reduce fi...