Clifford Chance

Clifford Chance advises Emirates REIT on debut US$400m Sukuk

First REIT from the MENA region to access the capital markets

Clifford Chance has advised Emirates REIT (CEIC) Limited (Emirates REIT), the world's largest, publically listed Shari'a-compliant real estate investment trust, on its inaugural US$400 million issuance of 5 year trust certificates. The trust certificates will pay a profit rate of 5.125% per annum and were admitted to trading on the Irish Stock Exchange on 12 December 2017.

With the successful completion of its debut offering, Emirates REIT becomes the first REIT from the MENA region to access the international debt capital markets.

The transaction attracted strong demand from a geographically diverse range of 90 accounts, with international investors comprising 51% of the final US$1.1 billion order book, representing a 2.5 times oversubscription for the transaction. 

Lead Partner and Middle East Head of Capital Markets, Stuart Ure observed: "We are delighted to have assisted the Emirates REIT team in bringing this landmark transaction to market. The success of Emirates REIT's inaugural offering is testament to the efforts of the entire Emirates REIT management and the REIT's high quality assets and long-term stable cash flow.  What made the transaction particularly novel was the complex structuring and commercial considerations in the context of the regulated nature of REITs in the UAE".

Standard Chartered Bank acted as sole global coordinator and joint lead manager and Dubai Islamic Bank, Emirates NBD and Warba Bank acted as joint lead managers.

The Clifford Chance team was led by Middle East Head of Capital Markets, Stuart Ure, supported by senior associates Brian O'Leary and Alekhya Prakash and associate Edesili Obetoh.