Amlak, in which Emaar holds a 45 per cent stake, is restructuring its debt again after it agreed to new terms on $2.7 billion of loans in 2014.
Tuesday 16, July 2019 BY MUZORIWA KUDAKWASHE
Dubai-based Islamic mortgage provider, Amlak Finance, has obtained approval from lenders for a restructuring of its debts and the firm expects to sign a new agreement before the end of 2019.
In a bourse filing, Amlak Finance stated that it has resumed negotiations with its financiers on restructuring terms to allow more flexibility to adopt to current market conditions.
The company is asking its creditors to reschedule repayments on $1.2 billion of loans over the originally agreed period that ends in 2026, most lenders are said to have agreed to the new terms, but a final deal has not been signed.
Emirates NBD, Standard Chartered together with Dubai Islamic Bank, Abu Dhabi Islamic Bank, as well as Dubai’s Department of Finance and the National Bonds, are among creditors.
PricewaterhouseCoopers is advising a group of about 28 creditors on their negotiations with Amlak, delaying some of the repayments may help the firm when the property market rebounds.
Property prices in Dubai have slumped 27 per cent since October 2014 amid excess supply and sluggish economic growth. The emirate will host the World Expo next year which it hopes will spark a recovery.
Additionally, rising oil prices may also help boost economic growth and support demand.