off-the-wire

UAE property developer DAMAC to sell 3-yr Islamic bond Tuesday

Kitco Media
By Reuters
Published:
Updated:
Reuters

DUBAI, April 18 (Reuters) - Dubai-based real estate developer DAMAC plans to sell a benchmark-sized three-year Islamic bond, or sukuk, on Tuesday, a bank document showed, following a series of investor calls and meetings that kicked off last week.

Benchmark-sized is understood to mean at least $500 million.

The company, rated BB- by S&P, has given initial profit rate guidance in the range of 8.125%, a document from one of the mandated banks showed.

Deutsche Bank, Emirates NBD Capital and J.P. Morgan are mandated global coordinators and bookrunners, and UAE lenders Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreq are also acting as joint bookrunners on the deal.

DAMAC's projects are targeted at the higher-end luxury segment 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.

Reporting by Rachna Uppal; editing by Andrew Heavens
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