Dubai-based real estate fund operator Emirate REIT’s plans to issue a new debt offering is meeting “significant resistance” from a “majority” of its existing bondholders, highly placed sources have told ‘Gulf News’.
These bondholders have called a virtual meeting later today to discuss the options available to them, including legal means, these sources add. “We believe that there is a widely recognized view that the company (Emirates REIT) proposal, in its current form, largely fails to address the long-standing concerns regarding other core issues,” said a source at one bondholder holding exposure in a $400 million, five-year Sukuk issued in late 2017.
These bondholders represent some of the biggest names in the global and local institutional investment space.
WHAT BONDHOLDERS WANT
Want more clarity on "risk/reward compensation" as well as sufficient downside protection to Sukuk certificate holders from the conversion plan.
More transparency and information reporting on "key matters such as valuation (and its underlying assumptions and methodology), individual historical and present performance and prospects of each of the assets within the Emirates REIT portfolio".The bondholders say they also want some disclosures on the allegations leading up to the investigations by DFSA.
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