Mashreq Bank/Supplied

Shari'ah / Regulation

ENBD REIT secures $177 million facility from Mashreq Bank

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The facility will be used to refinance $134.5 million of existing debt and the balance will support acquisitions to further diversify real estate portfolio.

Monday 01, July 2019 BY KUDAKWASHE MUZORIWA

ENBD REIT has secured a $177 million (AED 650 million) Shari’ah-compliant financing facility from Mashreq Bank to reduce the company’s cost of financing.

Anthony Taylor, the Head of Real Estate at Emirates NBD Asset Management, said, “The facility that we have secured with Mashreq Bank is important for both refinancing our existing debt—to deliver important cost savings for the REIT—as well as to support our acquisitions programme.”

In a statement, ENBD REIT said that the 12-year facility is profit only for the first four years, amortising 80 per cent during the following eight years with a 20 per cent balloon payment at the end of its term.

“We see this facility as providing them with a platform to further develop their Shari’ah-compliant portfolio of real estate assets and in turn benefit the UAE local economy over the long-term,” said Ahmed Abdelaal, the Executive Vice President, Head of Corporate and Investment Banking Group at Mashreq Bank.

TAGS : Mashreq Bank, ENBD REIT , Shari'ah-compliant

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