...February 21, 2025 This report does not constitute a rating action. DUBAI (S&P Global Ratings) Feb. 21, 2025--Damac Real Estate Development Ltd. (Damac; ##/Stable/--) has upsized its sukuk issuance to $750 million from the $500 million initially proposed. S&P Global Ratings today said that the increased amount would be neutral to Damac's credit quality. Damac has issued senior unsecured sukuk trust certificates that pay a 7% interest rate and mature in 2028, through Alpha Star Holding IX Ltd. We now expect S&P Global Ratings-adjusted debt to EBITDA at Damac to be 1.3x-1.6x in 2025, marginally above our previous expectation of 1.2x-1.5x. This gives Damac limited headroom to issue additional material debt in 2025 or to absorb weaker-than-expected performance over the next 12-18 months. Nevertheless, Damac remains the second-largest developer in Dubai and had an order backlog at the end of 2024 of over United Arab Emirates dirham (AED) 66 billion (about $18 billion). We consider its revenue...
