This report does not constitute a rating action. DUBAI (S&P Global Ratings) June 26, 2024--S&P Global Ratings today said that Damac Real Estate Development Ltd.'s $125 million tap to its existing $475 million sukuk--due April 2027 and issued via Alpha Star Holding VIII Ltd.--will not significantly affect its credit ratios. Damac (BB/Stable/--) plans to use the net proceeds from the issuance for general corporate purposes, including to buy land. The company's capital structure now comprises $1.2 billion of unsecured sukuks maturing between 2025 and 2027, compared with about $4.4 billion in cash at the end of first-quarter 2024, of which about $3.6 billion is in escrow accounts. The additional debt has a limited effect on Damac's leverage, considering the current
