Emirates REIT launched a consent solicitation to refinance its $400mn 5.125% unsecured sukuk due December 2022 with new secured certificates. It received support for the consent solicitation from an ad hoc group of eligible sukuk holders holding over 30% of the outstanding principal. Current holders can exchange each $1,000 in principal in old notes for $950 in face value of new notes and $50 in cash. The new certificates will have a profit rate of 9.5% maturing in 2024, with a one-year extension option. Collateral will be granted to the new notes with assets providing coverage of at least 150% of the outstanding amount of the notes. Current certificate holders have been asked to submit their decision before Tuesday, November 22 to benefit from a 50bp early ‘Documentation Review Fee’ paid by the REIT.

Emirates REIT’s 5.125% sukuk due 2022 was trading at 81.09 cents on the dollar prior to the announcement.

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