UAE property developer Damac sells $400m sukuk

UAE property developer Damac sells $400m sukuk

The issue followed a series of investor calls and meetings

Damac Properties delisted from the Dubai stock market last year. - KT file

By Reuters Published: Tue 18 Apr 2023, 6:52 PM

Dubai-based real estate developer Damac on Tuesday sold a three-year $400 million sukuk with a yield of 7.75 per cent, a bank document showed.

The issue followed a series of investor calls and meetings that kicked off last week for a benchmark-sized sale, understood to be at least $500 million.

The company, rated BB- by S&P, priced tighter than guidance of around 7.875 per cent released earlier as order books hit over $1.15 billion, a document from a mandated bank showed.

Damac’s projects are targeted at the higher-end of the market as the company seeks to take advantage of a property boom in Dubai amid a strong economic recovery after the Covid-19 pandemic.

The company delisted from the Dubai stock market last year.

Gulf issuers have rushed back to debt capital markets, seeking an opportunity to capitalise on lower yields and favourable market dynamics.

Investor demand for sukuk and sustainability-linked, or green, bonds has also spurred new issues.

On Monday, Abu Dhabi National Energy Company (Taqa) raised $1.5 billion from a two tranche deal, including a $1 billion