DAMAC Real Estate Ltd is planning a three-year U.S. dollar-denominated Islamic bond, or sukuk, which is expected to be worth at least $500M. The company has arranged investor meetings from April 13 to April 17, and a senior unsecured sukuk could follow depending on market conditions.
Deutsche Bank, Emirates NBD Capital, and J.P. Morgan are the mandated joint global coordinators, while Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Mashreq are acting as joint bookrunners. Gulf issuers are taking advantage of lower yields and favourable market conditions during the typically slow period of Ramadan.
DAMAC Properties focuses on luxury real estate projects in Dubai to cater to the high-end segment of the market, taking advantage of the demand for high-end properties in the commercial and tourism hub of the Gulf region, according to Reuters.
Last year, DAMAC delisted from the Dubai stock market due to the impact of COVID-19 on the property market and the profitability of real estate firms.
However, the emirate has experienced a strong post-pandemic rebound, particularly in the property sector. According to a report by real estate services and investment company CBRE released on Thursday, average residential prices in Dubai have increased by 12.8% in the year ending March 2023.
