News

ENBD secures $75m financing for RE fund

Dubai_real_estateDubai-based Emirates NBD real estate investment trust (ENBD REIT) has agreed a three-year $75 million Islamic financing scheme with Standard Chartered. According to the fund, which is listed on Nasdaq Dubai, $40 million will be used to repay existing debt while as much as $30 million of the remainder may be used to finance acquisitions. In a statement to Nasdaq Dubai, the fund also disclosed that there is the option of increasing the financing to $100 million. The arrangement, known as Murabaha or cost plus financing, follows what has been a difficult year for the real estate fund. Its share price has fallen by 35% in the year to date reducing its market capitalisation to $163.5 million. Meanwhile the fund’s net asset value fell by 3.7% for the first six months of the year, as decline it has attributed to the soft market conditions of the local real estate market. In addition to the financing arrangement, a meeting has also been convened for November 27 to propose cutting the fund’s share capital from $288 to $203.5 million by cancelling $84.5 million worth of shares and using the money to create a distributable reserve. ©2018 funds global mena

Executive Interviews

INTERVIEW: Totally mega

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Roundtables

MENA ROUNDTABLE: ‘The story is about reforms’

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Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.

SOUTH AFRICA ROUNDTABLE: Airline syndrome

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Our panellists tell us that instead of launching competing national projects, African countries should work together for the sake of a bigger capital market. Chaired by George Mitton in Cape Town.