Significant Resistance from Majority of Emirates REIT Bondholders on USD 400 Million Sukuk Conversion Plan

Dubai-based real estate fund operator Emirates REIT’s plans to issue a new debt offering have been met with significant resistance from the majority of its existing bondholders, according to a media report. Emirates REIT issued USD 400 million Sukuk Murabahah in December 2017 at a profit rate of 5.125% with a maturity of five years (2022), and the plan is for the new instrument to mature in 2024. This plan, announced on the 18th of May 2021, is what has given rise to these recent concerns.

Why it Matters?

The said bondholders are some of the biggest names in the global and local institutional investment space, and they have expressed disappointment that Emirates REIT has failed to address long-standing core issues. They have asked for more clar...