Dubai's Amlak said to eye $2bn loan extension

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Dubai-based Islamic mortgage provider Amlak Finance has proposed to extend the maturity of more than $2bn of debt by 15 years and reduce the amount by 30 percent, it has been reported.

Two sources familiar with the matter told Bloomberg that the company, which is part-owned by Emaar Properties, will make early payments on loans cashflow permitting. Amlak is currently looking to refocus on mortgage lending rather than property development, the sources said.

The committee of Amlak’s creditors, which is being advised by PricewaterhouseCoopers, is expected to response with a term sheet on repayments later this month. The committee is said to be chaired by Emirates NBD and also includes Standard Chartered, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Dubai’s Department of Finance and National Bonds Corporation, sources said.

The mortgage firm’s liabilities were cut by AED4bn in March last year after Amlak sold land and made a deal with some creditors. The Gulf state’s finance minister Sultan Bin Saeed Al-Mansouri at the time said that a government committee involved in Amlak’s restructuring opted not to liquidate in order to protect the rights of shareholders.

Amlak was one of the victims of the bursting of Dubai’s real estate bubble in 2008, which caused property prices to plunge by as much as 65 percent and trading of the firm’s shares to be suspended.

Related:

Market Performance

Amlak Finance - UAE
1.52
-0.04 -2.56 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi riyal peg pressure eases, but not gone

Saudi riyal peg pressure eases, but not gone

Volatile energy swings mean the currency remains vulnerable,...

The Gulf's sovereign dilemma

The Gulf's sovereign dilemma

With oil prices still faltering around their lowest level in...

Gulf's bond market thaws as panic over oil fades

Gulf's bond market thaws as panic over oil fades

Improved sentiment seen in the response to a $500m, five-year...

Most Discussed
sponsoredTracking