Damac offers a $650m regulation ‘S’ senior unsecured sukuk
03/04/2014 2:56 pm EDT


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DAMAC Real Estate Development Limited, a leading developer of high-end and luxury residential property in the Middle East, announces that it has successfully issued a US$650 million five year Regulation ‘S’ senior unsecured Sukuk (the “Sukuk”) maturing in April 2019, at a profit rate of 4.97%.

The Sukuk will be listed on NASDAQ Dubai and Irish Stock Exchange with effect from 9th April 2014.

Standard and Poor’s has assigned the Sukuk a rating of ‘BB’ in line with DAMAC’s corporate rating.

The order book for the issue was c.US$2.7 billion, representing an oversubscription of more than 4 times. The Sukuk was placed with a broad range of institutional investors across Europe, the Middle East and Asia and confirms the confidence of investors in DAMAC’s credit profile.

It is intended that the proceeds of the offering will be used for general corporate purposes and for the acquisition of land plots to strengthen and extend the Company’s development pipeline.

Commenting on the transaction, Hussain Sajwani, DAMAC’s Executive Chairman and Chief Executive Officer, said: “The success of this offering, which has been heavily oversubscribed, is another strong endorsement of the market’s confidence in DAMAC and its growth plans and allows us to further diversify our investor base and improve capital efficiency, in line with our tight risk management practices. In addition, it provides us with sufficient capital to continue our growth trajectory in the medium term in order to maintain our leadership position in the luxury real estate sector.”

For further information please contact:
FTI Consulting
Richard Sunderland
Neil Doyle +44 (0)20 3727 1000

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