Dubai-based real estate developer Damac on Tuesday sold a three-year $400 million sukuk with a yield of 7.75 per cent, a bank document showed.
The issue followed a series of investor calls and meetings that kicked off last week for a benchmark-sized sale, understood to be at least $500 million.
The company, rated BB- by S&P, priced tighter than guidance of around 7.875 per cent released earlier as order books hit over $1.15 billion, a document from a mandated bank showed.
Damac’s projects are targeted at the higher-end 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.
The company delisted from the Dubai stock market last year.
Gulf issuers have rushed back to debt capital markets, seeking an opportunity to capitalise on lower yields and favourable market dynamics.
Investor demand for sukuk and sustainability-linked, or green, bonds has also spurred new issues.
On Monday, Abu Dhabi National Energy Company (Taqa) raised $1.5 billion from a two tranche deal, including a $1 billion 10-year green bond.
While many issues have been sovereign, or state-linked, Damac was a test for appetite for a corporate debt issue in the private sector.
Deutsche Bank, Emirates NBD Capital and J.P. Morgan were mandated global coordinators and bookrunners, and UAE lenders Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreq also acted as joint bookrunners on the deal.
Once ramped up, the new centres are expected to each generate annual revenue of up to Dh200 million
Many residents opt for it in times of financial crunch and other urgent personal needs
Rents are projected to continue the upward trend across the country in 2024
The number of transactions carried out witnessed a significant increase compared to last year
The 57,000 sqm facility incorporates advanced technologies that include automated sort systems
Report notes that the GCC banking sector has experienced steady growth due to infrastructure projects, economic diversification efforts