Emirates REIT has issued the first sukuk by a real
estate investment trust (Reit) in the MENA region.
It’s also the first Reit from the region to
have a credit rating (BB+).
Reits have not traditionally issued
sharia-compliant bonds, and have instead preferred to
tap conventional debt markets for their financing needs. The
only previous issuance of this type was in Malaysia in 2014,
when KLCC Reit sold $930 million of Islamic bonds.
The Irish Stock Exchange (ISE) hosted the $400 million
issuance, which relied on underlying wakala and
murabaha contracts. The entire timeline of the deal
was less than two months. This was to ensure Emirates Reit
didn’t miss the favourable issuance window, at the
end of Q4, according to Ahmed Taha, director of debt capital
markets at Standard Chartered Bank, which acted as sole global
coordinator, ratings advisor and joint lead manager.
The hybrid structure included...