Bulletin: Damac Real Estate Development Ltd.'s Proposed $500 Mil. Sukuk Is Neutral To Credit Quality But Reduces Rating Headroom

This report does not constitute a rating action. DUBAI (S&P Global Ratings) Feb. 17, 2025--S&P Global Ratings today said that Damac Real Estate Development Ltd. (Damac; BB/Stable/--) 's proposed sukuk with a benchmark size issuance of about $500 million is neutral for the company's credit quality but reduces rating headroom over the next 12-18 months. The proposed sukuk, to be issued by Alpha Star Holding IX Ltd. (see " Alpha Star Holding IX Ltd.'s Proposed Senior Unsecured Sukuk Trust Certificates Rated 'BB' (Preliminary) ," published Feb. 17, 2025), is expected to mature in 2028. Damac plans to use the net proceeds from the issuance to refinance its $200 million private sukuk, which has been already called and is expected to

...February 17, 2025 This report does not constitute a rating action. DUBAI (S&P Global Ratings) Feb. 17, 2025--S&P Global Ratings today said that Damac Real Estate Development Ltd. (Damac; ##/Stable/--) 's proposed sukuk with a benchmark size issuance of about $500 million is neutral for the company's credit quality but reduces rating headroom over the next 12-18 months. The proposed sukuk, to be issued by Alpha Star Holding IX Ltd. (see "Alpha Star Holding IX Ltd.'s Proposed Senior Unsecured Sukuk Trust Certificates Rated '##' (Preliminary)," published Feb. 17, 2025), is expected to mature in 2028. Damac plans to use the net proceeds from the issuance to refinance its $200 million private sukuk, which has been already called and is expected to be paid in full in February 2025, as well as for general corporate purposes, including to buy land. After the issuance and refinancing, the company's capital structure would likely comprise $1.5 billion of unsecured sukuks maturing between 2026 and...

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