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New sukuk not to affect stock, says DAMAC

New sukuk not to affect stock, says DAMAC
Photo Credit: Arabianeye-Reuters
Damac
DAMAC
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Dubai – Mubasher: UAE’s luxury developer DAMAC Properties Dubai said Thursday the issuance of $100 million sukuk by its real estate arm would not have any effect on parent company.

DAMAC Real Estate Development, a wholly-owned subsidiary, issued 18-month sukuk on 21 September, which was rated ‘BB’ by Standard & Poor’s. The issue was fully-subscribed by Emirates NBD Capital Ltd, the company said in a filing to the Dubai Financial Market (DFM).

“The borrowing is in the usual course of business and therefore does not have any effect on the shares of DAMAC Properties Dubai on the DFM,” the luxury developer stated.

It previously said that it would use the proceeds from the Islamic bond issuance for general corporate purposes and in buying new land plots.