Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Turkey) region, has successfully priced a $200 million senior unsecured sukuk for DAMAC Real Estate Development, 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, and 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 the 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 rating actions it garnered throughout 2022. Due to the robust demand and the Group’s strong distribution capabilities, the transaction size was increased to $200 million from $150 million. The sukuk comes with a 7.5% profit rate and matures on May 7, 2025.