String of deals likely by summer; high liquidity among investors.
A well-timed launch saw
The real estate firm, rated BB by Standard & Poor's, kicked off the deal in a strong week for emerging markets and to a market starved of
As a result DIP, a unit of
"Even when we brought in pricing, hardly any orders fell out of the book, such was the appetite for this deal," a lead banker said.
At the time initial profit thoughts went out, bankers away from the deal were talking about a pick-up of 70-80 bps over larger and better-rated peer
Apart from the rarity value, the deal comes at a time when sentiment towards Dubai is extremely strong.
"This sukuk is secured by assets on the ground in Dubai, and perception towards Dubai is very strong at the moment," said
Last week Dubai's largest real estate developer, state-linked
"Also, DIP operates a major land bank in the general area where the Expo is to be held," Wajid noted.
Dubai will host the world's fair in 2020 and plans billions of dollars of spending on infrastructure in the area.
DIP's main asset, a mixed industrial, commercial and residential block, is adjacent to the World Expo 2020 site, according to the deal documentation.
Overall conditions helped as well. Institutional investors in
European investors took 49 per cent of DIP's issue, followed by
Gulf corporates rarely offer much spread either, which made this an attractive deal, a rival banker said.
Other potential issuers would be encouraged by the transaction and more deals could follow soon, particularly from the
"There are other issuers waiting to hit the market and we could see a flurry of deals between now and the summer," said Wajid.
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