Dubai—Dentons has advised DAMAC Real Estate Development Limited, a leading developer of high-end and luxury residential property in the Middle East, on its tender offer in respect of the outstanding US$650 million Trust Certificates due 2019, as well as a new debt issuance of a US$400 million five-year Regulation 'S' senior unsecured sukuk, maturing in April 2023.
The issuance proceeds will be used for general corporate purposes, while re-paying some of the outstanding amount of a previous sukuk, as part of DAMAC's liability management. Dentons previously advised DAMAC on a separate tender offer and sukuk issuance in April 2017.
This latest transaction is unique, as DAMAC has made a tender offer for the second consecutive year, together with new sukuk issuances. Dentons has advised DAMAC on every one of its sukuk issuances since its debut sukuk issuance in 2014.
The new sukuk was issued via a Cayman Islands special purpose vehicle, Alpha Star Holding V Limited. Barclays and HSBC acted as joint global co-ordinators and Dubai Islamic Bank, Emirates NBD Capital, KAMCO Investment Company, Mashreqbank and Sharjah Islamic Bank acted as joint lead managers in respect of the new issue. Barclays, HSBC and Emirates NBD Capital acted as dealer managers in respect of the tender offer.
The Dentons team was led by partner Alex Roussos, with assistance from associate Sana Siddiqui.
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