Emirates REIT’s $400mln sukuk refinancing gets nod from Ad Hoc Group

Emirates REIT’s $400mln sukuk refinancing gets nod from Ad Hoc Group

Emirates REIT has received support from some of its certificate holders for the proposed refinancing of its $400 million sukuk, due to mature next month, with a new maturity date of December 2024.

A statement from a group representing more than 30% of certificate holders, called the Ad Hoc Group, said it found a proposal by the real estate investment trust, which includes exchanging each $1,000 face amount for a $950 certificate and $50 in cash, acceptable.

The proposal includes a new maturity date of December 2024, with a one-year extension option.

The group comprises Arkkan Capital Management Limited, Rasmala Investment Bank Limited, GFH Financial Group, Sancta Gapial, SC Lowy Primary Investments, Plenisfer Investments, Emirates NBD Asset Management, Shuaa Capital and Saray Capital.

A statement from advisors Rothschild & Co said that having reviewed the proposed final terms of a consent solicitation by Emirates REIT, group members found the terms of the proposed transaction acceptable, and intend to vote in favour, inviting other certificate holders to review the proposed terms and consider voting in favour.

Under the terms of the proposal, new secured certificates will move from an unsecured position to a fully secured position, benefiting from first ranking security over assets of Emirates REIT,