Dubai’s DAMAC said it has seen “robust demand” for its new bond offering, a $200 million senior unsecured sukuk. 

The 2.25-year senior issuance has been successfully priced by Dubai’s biggest lender, Emirates NBD, according to a statement on Tuesday. 

Proceeds of the new sukuk, the third private placement arranged for DAMAC Real Estate Development Limited, will go towards the repayment of the developer’s existing debt. 

“I am happy to see this placement has seen great interest from regional and international investors. The sukuk proceeds primarily will be used for repayment of existing debt in addition to supporting future growth of our company,” said Hussain Sajwani, Founder and Chairman of DAMAC. 

Emirates NBD has been appointed the sole global coordinator, placement agent and settlement agent for the offering. It led the unlisted transaction from origination, structuring, documentation, marketing to settlement. 

Due to strong demand from investors, the transaction size was increased to $200 million from $150 million. The sukuk comes with a 7.5% profit rate and matures on 7 May 2025. 

DAMAC Real Estate Development reported in December a net profit of AED 135.6 million ($36.9 million) for the three-month period ended 30 September 2022, a turnaround from a loss of AED 182.4 million in the previous year. 

(Reporting by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@lseg.com