Dubai's Jebel Ali Free Zone (Jafza) is seeking consent from holders of its $2 billion-equivalent Islamic bond, or sukuk, for early redemption of the certificates, the company said in a disclosure to Nasdaq Dubai on Wednesday.

The state-linked industrial free zone, part of a unit owned by Dubai World, has scheduled a meeting on May 24 in London to approve the Extraordinary Resolution and initiated the "consent solicitation" on Wednesday.

Jafza, located on the outskirts of Dubai, said earlier this week it was in advanced discussions with banks over a financing package to meet its bond obligation.

"The Trustee is proposing the introduction of a call option to provide Jafza with enhanced flexibility to implement the new financing in a timely and efficient manner and to allow the timing of the dissolution of the underlying trust to be coordinated with the new financing," the company said.

Citigroup, Dubai Islamic Bank and Standard Chartered are listed as solicitation agents.

Along with a $1.25 billion sukuk issued by another state-owned entity, DIFC Investments, which matures in June, the upcoming Jafza redemption is being closely tracked for the ability of Dubai Inc firms to meet their debt obligations. – Reuters