A group of creditors has hired
financial adviser Rothschild and law firm Clifford Chance to
help oppose the terms of a proposal by Dubai-listed Emirates
REIT to exchange $400 million in Islamic bonds. | May 23, 2021
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DUBAI (Reuters) - A group of creditors plans to oppose the terms of an offer by Dubai-listed Emirates REIT to exchange $400 million in Islamic bonds for new instruments, four sources told Reuters.
Emirates REIT on Tuesday offered to exchange unsecured sukuk for secured ones as part of a revamp aimed at bolstering the sharia-compliant real estate investment trust s balance sheet, which has been hit by the coronavirus crisis.
The plan envisages extending the bonds maturity to 2024 from 2022, as well as a deferral of coupon payments for a year.
Creditors will be given instead first-ranking mortgage security over certain assets in Dubai and its financial centre with an aggregate value of about $280 million.