According to sources, state-linked property developer Dubai’s Meraas Holding is planning a tender offer to repurchase its existing dollar-denominated Islamic bonds for cash and to issue new sukuk to replace them. Meraas’ $600mn sukuk issued in 2017 fell sharply to 80 cents on the dollar as the pandemic hit Dubai’s struggling real estate sector. However, following the government announcement that the company would come under the umbrella of the ruler of Dubai’s investment vehicle Dubai Holding, its bond has increased in value. The source states that the tender for the existing sukuk will depend on the successful issuance of the new 5-year sukuk.
Meraas’s 5.112% 2022s were largely flat at 101.4, yielding 3.2%.
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