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

(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
1.32
0.0 0.0 (%)
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
Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

How Gulf SWFs have thrown funding lifeline to tech ventures

How Gulf SWFs have thrown funding lifeline to tech ventures

Saudi Arabia and other Gulf states have ploughed money into hot...

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Deal makes the Public Investment Fund a player in the technology...

Most Discussed
sponsoredTracking