Emirates REIT has refinanced its existing sukuk with a new $205 million sukuk due 2028 with a 7.5% profit rate.

The real estate investment trust’s sukuk matures this month, and while a one-year extension right had been exercised to December 2025, the trust announced on Friday that it has now been refinanced.

Thierry Delvaux, CEO of REIT manager Equitativa, told Zawya in an earlier interview that the one-year extension had been exercised ‘for convenience’ but that he intended to refinance or have a new sukuk by the end of the year.

https://www.zawya.com/en/capital-markets/equities/emirates-reit-to-refinance-or-issue-new-sukuk-by-end-of-2024-c7a1uots

HSBC was the lead arranger through its private credit and debt capital markets teams and the new sukuk is assigned a BB+ rating by Fitch.

The profit rate of 7.5% for the first three years will step up to 8.25% in the fourth year.

Delvaux said the REIT had reduced its outstanding financings by $190 million.

The REIT sold an office asset in Dubai for $196 million earlier this year.

https://www.zawya.com/en/markets/equities/emirates-reit-to-sell-office-park-for-196mln-as-sukuk-deadline-approaches-qi9rxz81

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com