• The transaction marks Emirates NBD’s third private placement for DAMAC, reflecting the Group’s strong distribution capabilities  

Dubai: Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Turkey) region, has successfully priced a USD 200 million senior unsecured sukuk for DAMAC Real Estate Development Limited, marking the Group’s third private placement arranged for the property company.

Emirates NBD was the sole Global Coordinator, Placement Agent and Settlement Agent, and led the unlisted transaction from origination, structuring, documentation, marketing to settlement.  

Hussain Sajwani, Founder and Chairman of DAMAC said: “Over the years, we have enjoyed a very strong relationship with Emirates NBD. 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.”

The sukuk saw significant demand, reflecting DAMAC’s robust credit fundamentals and the confidence regional investors have in the company following its recent reorganisation and the positive credit ratings actions it garnered throughout 2022.

Due to the robust demand and the Group’s strong distribution capabilities, the transaction size was increased to USD 200 million from USD 150 million. The sukuk comes with a 7.5% profit rate and matures on 7 May 2025.

 Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD said: “We are delighted to have arranged a third private placement for DAMAC, a testimony to the strength of our relationships with our clients and our access to a deep network of regional investors. Our ability to single-handedly lead the transaction from origination to settlement also reflects the bank’s ability to tailor bespoke solutions for the complex financing requirements for our clients. By enabling companies to invest and do business in the MENA region, our vision is to continue growing and evolving as the UAE's leading corporate bank.”

Hitesh Dhoot, Chief Financial Officer at DAMAC Real Estate development LTD said: “Emirates NBD has supported DAMAC across our entire business portfolio. A testament of this strong partnership is evident in our investor pool which exceeds 15 from across this region, and beyond. We are delighted to strengthen this bond with our esteemed partner.”

About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Turkey) region with a presence in 13 countries, serving over 17 million customers. As at 31st December 2022, total assets were AED 742 billion, (equivalent to approx. USD 202 billion). The Group has operations in the UAE, Egypt, India, Turkey, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 879 branches and 4,130 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.6 billion. 

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv., the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is also an early supporter to Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.