Construction & Real Estate

Amlak Finance eyes $1.2bn debt deal by 2019-end

Amlak Finance, a leading specialised Islamic real estate financier in the Middle East region, said it has made significant progress in negotiations with creditors on the new restructuring terms with regard to its $1.2 billion debt.

The Dubai-based group said it was confident of reaching an agreement by the end of this year.

Amlak is negotiating new restructuring terms with creditors that will “allow more flexibility to adapt to current market conditions” and boost growth, said the company in its filing to the Dubai bourse.

In 2014, Amlak first concluded the restructuring of its Dh10.2 billion ($2.7 billion) investment deposits and settled Dh 2.8 billion in cash with financiers.

Since the original restructuring Amlak has successfully serviced its debt, and generated net profits of Dh136 million, Dh107 million and Dh51 million for fiscal years 2015, 2016 and 2017, respectively.

The company said early this year that it had paid Dh4.3 billion, representing 48 per cent of its total outstanding debt to its financiers within the first four years of restructuring, and redeemed Dh275 million representing 21 per cent of the mudaraba instrument.

Amlak, in which Emaar Properties, holds a 45% stake, is restructuring its debt again after it agreed to new terms on $2.7 billion of loans in 2014, it added.-TradeArabia News Service