Dubai Shares Rebound as Amlak’s New Debt Agreement Boosts Emaar - Bloomberg

Dubai Shares Rebound as Amlak’s New Debt Agreement Boosts Emaar - Bloomberg:



"Dubai stocks ended three days of declines after a mortgage provider part-owned by Emaar Properties PJSC (EMAAR) proposed a new debt deal, boosting shares in the developer of the world’s tallest tower.



The DFM General Index (DFMGI) gained 3.2 percent to 4,067.67 at the close in the emirate, after declining as much as 5.4 percent. Emaar, which has the biggest weighting on the index and holds 45 percent (AMLAK) of Amlak Finance PJSC’s shares, rallied 5.8 percent to 8.90 dirhams, ending a three-day rout. The lender is proposing an initial 20 percent payment to depositors, or about 2 billion dirhams ($545 million), and to repay the remaining debt owed over 12 years, its spokesman said by e-mail.



“Amlak’s news is positive for Emaar,” Nayal Khan, head of institutional sales and trading at the Naeem Holding brokerage in Dubai, said by e-mail. “It’s exposure to Amlak was considered impaired by the market.”"



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