In preparation for a potential three-year Islamic bond, or sukuk, expected to have a value of at least $500 mn, property developer DAMAC Real Estate Ltd (DAMAC) orders banks to set up investor meetings, according to a document released on Thursday.

According to a document from one of the mandated banks, investor calls and meetings are scheduled to start on April 13th and last until April 17th. A senior unsecured sukuk could follow but will be dependent on market conditions.

According to the document, joint global coordinators of the transaction are Deutsche Bank, Emirates NBD Capital, and J.P. Morgan. UAE lenders Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Mashreq are joint book-runners.

During a typically slow time of Ramadan, Gulf issuers are rushing back to the debt capital markets to take advantage of lower yields and favorable market dynamics.

In order to capitalize on the demand for luxury real estate in Dubai, the financial and tourism center of the Gulf region, DAMAC Properties targets the higher-end luxury segment of the market with its projects.

It is noteworthy that DAMAC was delisted from the Dubai stock market last year after submitting a request to do so in 2021 as COVID-19 hit the property market and weighed on the profitability of real estate firms; however, it rebounded strongly post-pandemic, led by a property boom.

Average residential prices in Dubai have increased by 12.8% through March 2023, a report by real estate services and investment company CBRE showed on Thursday.