Emirates NBD arranges Damac’s $200m unsecured sukuk

It was the bank’s third private placement arranged for one of Dubai’s largest property companies.

Emirates NBD was the sole global coordinator, placement and settlement agent, and led the unlisted transaction through the whole process of origination, structuring, documentation, marketing to settlement.

The sukuk saw significant demand, reflecting Damac’s 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 demand and the group’s strong distribution capabilities, the transaction size was increased from the earlier planned $150 million. The sukuk comes with a 7.5 percent profit rate and matures on 7 May 2025.

Hussain Sajwani, Founder and Chairman of Damac, commented: “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.”

Ahmed Al Qassim, Group Head of Wholesale Banking, Emirates NBD, said: “We are delighted to have arranged a third private placement for Damac. 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.”