Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Abu Dhabi real estate firm, owned by ruling family, in dollar sukuk sale

Stock MarketsJul 05, 2021 11:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yousef Saba

DUBAI (Reuters) -The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan LLC (PD), a relatively small real estate player in Abu Dhabi owned by members of its ruling family, has hired banks for a debut sale of U.S. dollar-denominated sukuk, or Islamic bonds, a document showed on Monday.

The company, which owns a portfolio that is focused 90% in the United Arab Emirates capital with the rest in neighbouring Dubai, hired Emirates NBD Capital and First Abu Dhabi Bank as global coordinators.

Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreq will join them in arranging investor calls starting on Monday, the document from one of the banks showed.

A five-year sukuk sale will follow, subject to market conditions. Proceeds will fund capital expenditure and acquisitions, S&P Global (NYSE:SPGI) Ratings said in a report.

The agency has assigned PD a sub-investment grade 'BB' long-term issuer rating, constrained by its "limited portfolio size in a fragmented and weak Abu Dhabi real estate market and its high leverage," but "supported by good asset quality, locational advantage, and strong shareholders."

The bond sale would largely refinance existing loans, two sources with knowledge of the matter said, one of them adding it was likely to be around $500 million.

The Gulf rarely sees private companies tap the international debt markets, and one of the sources said the deal would pave the way for new issuers.

"They will come back to the market. This is the first transaction," the source said, adding the goal was to follow this debut five-year deal with medium- to long-term funding in the future.

"Enough of the same," the source said, referring to a region where sovereigns made up roughly half the volume of issuance in the past two years, though they are expected to represent a smaller slice of the market this year.

The company said in an investor presentation reviewed by Reuters that its "strong relationship with the Abu Dhabi government" gave it priority assistance in receiving re-zoning and planning approvals, as well as demonstrated support and financial and in-kind contributions, as well as other benefits.

PD's properties in development are expected to result in revenue growth of between 4% and 5% this year and 25% to 30% in 2022. Its portfolio "will remain small in a regional context" despite the additions and potential acquisitions, S&P said.

The properties market in the United Arab Emirates - a significant component of the country's gross domestic product - suffered last year amid the coronavirus crisis, with prices in Abu Dhabi and Dubai falling sharply.

"The Abu Dhabi real estate market is at a low point in the cycle, which could dampen the company's growth," S&P said.

The company's total debt was 2.17 billion dirhams ($590.86 million) at end-2020, the investor presentation showed.

($1 = 3.6728 UAE dirham)

Abu Dhabi real estate firm, owned by ruling family, in dollar sukuk sale
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Quran ألا بذكر الله تطمئن القلوب
Quran ألا بذكر الله تطمئن القلوب Jul 05, 2021 9:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email