Emirates REIT Issues $205 Million Sukuk Amid Refinancing Moves

Emirates REIT, a sharia-compliant real estate investment trust based in Dubai, has issued a $205 million sukuk to address refinancing needs and enhance its financial stability. This move follows earlier challenges, including difficulties in gaining investor approval for a sukuk restructuring in 2021. The new issuance reflects the company’s efforts to solidify its position within the evolving financial landscape, marked by rising inflation and shifting credit conditions.

The sukuk is part of a broader refinancing strategy aimed at replacing a previous $400 million sukuk issued in 2017, which faced challenges due to limited investor support for its exchange offer. The updated bonds feature a profit rate that aligns with current market dynamics, underscoring Emirates REIT's strategy to navigate complex financial pressures effectively.

A significant majority of sukuk holders approved the refinancing plan, highlighting strong investor confidence despite prior setbacks. Thierry Leleu, CEO of Equitativa, the entity managing Emirates REIT, emphasized the importance of this milestone, noting its role in driving the company toward sustainable growth.