UAE real estate developer Damac raised $600 million through a 3.5-year benchmark sukuk, while the transaction attracted an orderbook exceeding $1.7 billion, excluding joint lead manager interest. As a result, demand significantly outpaced supply, underscoring strong investor appetite for regional credit.
Moreover, pricing tightened to a 6.125% semi-annual coupon from initial price thoughts in the 6.625% area. The Regulation S Murabaha sukuk was issued at par, therefore setting a yield of 6.125%.
Structure and ratings
The sukuk is marketed by Alpha Star Holding X Limited, a special purpose vehicle, with Damac Real Estate Development Limited acting as the obligor. Additionally, the issuance falls under Alpha Star’s $2 billion Trust Certificate Issuance Programme.
The transaction carries an expected Ba1 rating from Moody’s and a BB+ from S&P, which is therefore aligned with the developer’s existing credit profile. This consistency supported investor confidence during the bookbuilding process.
Banks and market execution
Emirates NBD Capital, JP Morgan and Standard Chartered Bank acted as joint global coordinators and joint bookrunners. Furthermore, Abu Dhabi Commercial Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, RAKBANK and Warba Bank participated as joint bookrunners.
Overall, the successful execution highlights continued access to international debt markets for UAE issuers. Consequently, the transaction reinforces Damac’s funding flexibility amid active capital market conditions.
