PHOTO
UAE real estate developer Damac’s latest debt market tap has raised $600 million, with the 3.5-year benchmark sukuk drawing in an orderbook that exceeded $1.7 billion, excluding JLM interest.
The price was tightened to a 6.125% semi-annual coupon from IPTs in the 6.625% area. The Regulation S Murabaha structure set a 6.125% yield with a reoffer price at par.
Alpha Star Holding X Limited, an SPV, is marketing the sukuk, with Damac Real Estate Development Limited listed as the obliger.
The issuance will fall under Alpha Star’s $2 billion Trust Certificate Issuance Programme and carries an expected rating of Ba1 by Moody’s and BB+ by S&P, in line with Damac’s own rating.
Emirates NBD Capital, JP Morgan and Standard Chartered Bank have been mandated as joint global coordinators and joint bookrunners, together with Abu Dhabi Commercial Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, RAKBANK and Warba Bank as joint bookrunners.
A listing on Euronext Dublin (GEM) will follow.
(Writing by Bindu Rai, editing by Seban Scaria)
