Dubai's Damac in talks with banks for possible dollar sukuk issue - sources

Early last year Damac sold a $500 million five-year sukuk issue
Hussain Sajwani said Damac was exploring opportunities in Canada and in parts of Europe for new projects.
By Reuters
Mon 05 Feb 2018 05:35 PM

Damac Properties, the second largest listed real estate developer in Dubai, is in talks with banks about a possible issue of US dollar-denominated Islamic bonds, sources familiar with the matter said on Monday.

Discussions about a new issue are at an early stage, said the sources, declining to be named because the talks are private.

A spokesman at Damac said: “We are continuously in talks with many bodies on funding possibilities and options. We always keep all options open. When financing decisions are made we make appropriate announcements.”

Damac is a business partner of US President Donald Trump and operates the only Trump-branded golf club in the Middle East. Trump World Golf Club Dubai, a second golf project planned by Damac, is expected to open by the end of 2018.

Hussain Sajwani, Damac's chairman and founder, told Reuters last August that the company expected to reach its pre-sales forecast of 7 billion dirhams ($1.91 billion) in 2017. He also said Damac was exploring opportunities in Canada and in parts of Europe for new projects.

Damac, rated BB by Standard & Poor's, has issued sukuk in the past. Early last year it sold a $500 million five-year sukuk issue arranged by Bank of America Merrill Lynch, Emirates NBD Capital, HSBC and VTB Capital.

Just before the sukuk sale, Damac bought back around $198 million of an existing $650 million sukuk issue due in 2019.

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