Abu Dhabi: Amlak Finance, the Dubai-listed real estate financier, said on Tuesday it has renegotiated certain parts of its restructuring terms with its financiers.

Amlak had presented a new business plan, which has now been formally approved by a majority of the financiers to allow greater operational capacity. In a statement, the company said the new plan will allow Amlak to grow its business and better adapt its long-term strategy.

In September 2016, Amlak approached its financiers to waive terms, which included adjustments to certain restrictions to allow for the company’s mortgage book to be maintained at higher anticipated levels, and funds to be raised under certain pre-agreed parameters.

“The new business plan will have a positive impact on the company and is designed to strengthen our financial and business viability on a long-term basis adding to the prospects of redeeming the contingent convertible instrument earlier than previously anticipated,” said Arif Alharmi, managing director and chief executive officer of Amlak.

He added, “Of course, one cannot accurately predict the economy and its fluctuations, but I remain confident that this newly negotiated deal will allow us the flexibility to ensure we remain profitable and able to fulfil our financial obligations to all our stakeholders.”

The CEO said the company’s long-term focus was to grow its position as a financier in Dubai and the Middle East.

The company also said the plan will allow it to increase its business origination levels without limitation on an ‘on and off balance sheet’ basis subject to regulatory caps, depending on the market demands and the company’s fund raising capacity. The new terms do not affect the repayment period or amounts, or profit payments to financiers.

In 2014, Amlak completed its restructuring, paving the way towards the company’s shares being readmitted for trading on the Dubai bourse.

Since the original restructuring, Amlak has paid Dh3.5 billion (representing 42 per cent of total debts) to its financiers. It also redeemed Dh200 million, which represents 15 per cent of the Contingent Convertible Instrument within the first year of restructuring.

Amlak’s share prices ended 3.12 per cent higher on Tuesday to reach Dh1.32.