Emirates NBD arranges DAMAC’s USD 200 million 2.25-year senior unsecured sukuk

• Emirates NBD was Sole Global Coordinator, Placement Agent and Settlement Agent 
• The transaction marks Emirates NBD’s third private placement for DAMAC, reflecting the Group’s strong distribution capabilities   

Dubai, 14 February 2023:  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.”