DAMAC Properties projects are targeted at the higher-end luxury segment of the market as the company seeks to take advantage of demand for high-end real estate in Dubai, the commercial and tourism hub of the Gulf region. DAMAC delisted from the Dubai stock market last year after submitting a request to do so in 2021 as COVID-19 hit the property market and weighed on profitability of real estate firms. The emirate has however rebounded strongly post-pandemic, led by a property boom. Average residential prices in Dubai have increased by 12.8% in the year through March 2023, a report by real estate services and investment company CBRE showed on Thursday. (Reporting by Rachna Uppal; Editing by Jason Neely and Christopher Cushing)
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DUBAI, April 13 (Reuters) - Property developer DAMAC
Real Estate Ltd (DAMAC) has mandated banks to arrange investor
meetings ahead of a potential three-year U.S. dollar-denominated
Islamic bond, or sukuk, expected to be at least $500 million in
size, a document showed on Thursday.
Investor calls and meetings are scheduled to begin on April
13 and will run to April 17, and a senior unsecured sukuk could
follow but will be subject to market conditions, showed the
document from one of the mandated banks.
Deutsche Bank, Emirates NBD Capital and J.P. Morgan are
mandated joint global coordinators, and UAE lenders Abu Dhabi
Commercial Bank, Dubai Islamic Bank and Mashreq are acting as
joint bookrunners on the deal, the document showed.
Gulf issuers are rushing back to debt capital markets during
a typically slow period during the Muslim fasting month of
Ramadan, seeking an opportunity to capitalise on lower yields
and favourable market dynamics.
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