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Emirates REIT has refinanced its AED 184 million Islamic financing facility with Ajman Bank, continuing a structure originally put in place in March 2023. The renewed facility carries a profit rate linked to the 3-month EIBOR plus 2.75 percent, with a minimum rate of 5 percent. It has a 10-year tenor with scheduled amortisation. The initial financing had been used to reduce previous debt. This refinancing aligns with the REIT's broader plan that previously included sukuk refinancing and reducing its overall leverage.
Emirates REIT has refinanced its AED 184 million Islamic financing facility with Ajman Bank, maintaining the core terms agreed when the facility was first drawn down in March 2023. The renewed structure carries a profit rate based on the 3-month EIBOR plus 2.75 percent, with a floor of 5 percent. It also continues with a 10-year tenor that includes a gradual repayment schedule. Advertisement
The earlier facility had been used to reduce existing financial liabilities, including portions of older debt instruments. It remains an important part of the REIT's funding mix, as noted in the company's annual financial disclosures. The refinancing provides continuity in pricing and structure while supporting long-term capital planning.
This development forms part of Emirates REIT's wider debt strategy. Over the past year, the REIT refinanced its sukuk by issuing a new USD 205 million sukuk maturing in December 2028, which holds a BB+ rating from Fitch. The company had also reduced its overall debt levels, resulting in its financing-to-value ratio falling below 26 percent.
Emirates REIT's decision to renew its Islamic financing arrangement reinforces its focus on predictable long-term funding, a Shariah-compliant structure, and stable debt management, reflecting the approach it has taken across recent financing activities.
Source Reuters
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