Tuesday 03, January 2017 by Isla MacFarlane

Eskan Bank lists Bahrain’s first Islamic REIT

Units of the Eskan Bank Realty Income Trust commenced trading on 2 January under the symbol ‘EBRIT’.

Eskan Bank listed a total of 198,000,000 units with a nominal value of BHD 0.100 per unit. Trading in the units is restricted to GCC investors.

BHB Chief Executive Shaikh Khalifa bin Ebrahim Al Khalifa, said, “The commencement of trading of Bahrain’s first Shari’ah-compliant retail real estate investment trust (REIT) underlines the ongoing initiatives by the Central Bank of Bahrain and Bahrain Bourse to bring new products and services to the exchange. These are designed to improve the Bourse’s liquidity and depth, thereby strengthening its competitiveness and enhancing its appeal to local, regional and international investors, both institutional and individual.”

Eskan Bank General Manager Dr. Khalid Abdulla said, “This provides investors with the opportunity to share in the Bank’s significant property development activities, and benefit from commercial and residential rental income across diversified assets. This historic listing underlines our commitment to encourage private sector participation in the Bank’s real estate development projects that target social housing and its related amenities.

“Such a landmark financial instrument will add to the breadth of investment opportunities in the Kingdom of Bahrain; offer diversification within the real estate sector with primary exposure to retail, office and residential segments, thereby spreading the risk of owning individual properties.”

The Eskan Bank Realty Income Trust has a target of 6.5 per cent in net distributable income payable semi-annually, and is expected to offer lower risk and volatility than stocks and bonds due to long-term rents, prime-asset backing, and no current leverage.

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