Positive reaction in test with
That comes amid a recent spike in demand by cash-rich regional banks seeking higher yields as concerns about emerging markets begin to wane.
DIP, a subsidiary of
The firm will use
"DIP is an attractive sukuk," said
"What is more, the issue came at a very good time, just when concerns surrounding emerging market countries started to diminish. Fundamentally, DIP is also a strong credit with visible cash flow streams benefiting from
Other fixed income specialists, including
Islamic bond sales fell 9.5 per cent in 2013 to
Standard & Poor's gave DIP a BB rating, two levels below investment grade, in July, positioning the firm to tap debt at cheaper rates.
Separately, DIP said yesterday that it was planning to become more active in the country's real estate sector amid a boom in property prices.
It said it would soon unveil a number of "iconic" projects across the
The real estate assets of DIP cover 30 million square feet and are worth more than Dh8.3bn, representing 67 per cent of the firm's total assets, the firm said.
"As one of the leading companies, we feel the time is right to move forward with developing our land banks. Average property prices in Dubai have risen by more than 20 per cent in the last 12 months and we are confident that 2014 will mark a major step-change in the growth of the
Shares of DIP jumped 7.1 per cent in trading yesterday.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?