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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, the trust said.
Profit rate will increase from 5.125% to 9.5% initially to reflect the current credit environment with rising inflation, profit rates and market volatility, it added.
Thierry Leleu, CEO of the manager of Emirates REIT, Equitativa, who told Zawya in June that he was working towards refinancing after an earlier attempt was rejected by bondholders in 2021, said: “In the current extraordinary geopolitical and macro-economic circumstances, we have worked constructively with all our certificate holders and lenders towards a new, comprehensive refinancing package that we believe is attractive for all parties.
“The economically compelling terms of this proposal will benefit all certificate holders and enable the REIT to successfully achieve its refinancing.
“We have therefore today launched a new consent solicitation and we are confident that, with the support our Certificate holders including the Ad Hoc Group, it will comfortably meet the required consent threshold.”
(Writing by Imogen Lillywhite; editing by Seban Scaria)
