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Huge response to Dubai Investment Park’s $300 million sukuk
Dubai Investment Park, or DIP, a unit of Dubai Investments, saw its $300 million sukuk oversubscribed by more than 13 times on Thursday on the back of surging investor confidence in Dubai's growth.
- PUBLISHED: Fri 14 Feb 2014, 10:45 PM UPDATED: Tue 7 Apr 2015, 10:15 PM
DIP recorded an order book of around $4 billion on its new five-year sukuk transaction. The deal, the first Islamic issue out of Dubai this year, was launched on Thursday morning at 265 basis points over swaps, 35bps inside of guidance. Abu Dhabi-based Al Hilal Bank, Citigroup, Dubai Islamic Bank and Emirates NBD are arranging the transaction.
DIP’s parent group, Dubai Investments, reported a more-than-twofold jump in its 2013 net profit, on the back of higher gain on fair value of its investments, profit from sale of properties and reduced finance costs. The company, in which sovereign fund Investment Corporation of Dubai owns an 11.5 per cent stake, posted a net profit of Dh822 million compared with Dh321.4 million in 2012.
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DIP, the largest integrated commercial, industrial and residential community in the Middle East, recently announced that Phase 8 — the final phase of the 2,400-hectare mixed-use development – would be fully completed by the end of the first quarter of 2014.
Once complete, the 430,000sqm Phase 8, being constructed at a cost of Dh325 million across two stages, is expected to be a hub for logistics services as a significant portion of land has been allocated for this sector. Phase 8 entails construction of a total of approximately 375 warehouses and light industrial units.
The first stage of Phase 8, which was completed in mid-2012, has been fully leased and is approximately 80 per cent occupied.Phase 8 will have well-planned road network, electricity and water network, sewerage system and irrigation and district cooling facilities on a total built-up area of 2.4 million sqft.
— issacjohn@khaleejtimes.com