Damac Real Estate Development Limited, a leading Dubai-based property developer, has announced plans to issue USD benchmark senior unsecured notes, marking a strategic step to broaden its international investor base and strengthen its financing framework. The offering, designed for professional investors outside the United States, will be listed on Euronext Dublin with a minimum denomination of USD 200,000 and increments of USD 1,000.
The notes, which carry a 3.5-year fixed rate, are positioned to provide Damac with stable long-term funding while tapping into a diversified pool of global investors. The exact offer price is yet to be determined, reflecting market conditions and investor demand.
J.P. Morgan and Global Stabilization Team to Lead Offering
J.P. Morgan Securities plc will act as the primary stabilization coordinator for the transaction. They will be supported by eight stabilizing managers: Standard Chartered Bank, Emirates NBD Capital, Abu Dhabi Commercial Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, RAKBANK, and Warba Bank.
The stabilization period is scheduled to begin January 29, 2026, and conclude no later than February 29, 2026. During this time, the stabilization team has the option to over-allot securities by up to 5% of the total nominal amount to maintain market stability and investor confidence.
This approach ensures the notes launch with a controlled market environment, protecting both Damac and participating investors.
Strategic Rationale for the Offering
By issuing USD-denominated senior notes, Damac seeks to strengthen its liquidity profile and support international expansion plans. The funding will help the company continue its development of high-profile residential and commercial projects across Dubai and other markets, maintaining its position as one of the region’s prominent real estate players.
Unlike typical domestic fundraising, this international issuance emphasizes global investor participation, aligning with Damac’s strategy to attract long-term capital and enhance financial flexibility. The notes are not registered under the United States Securities Act of 1933 and are not offered to U.S. investors. Instead, the focus is on qualified investors outside the UK and those in the UK with professional investment experience.
Regulatory Framework and Market Implications
The announcement was made via a regulatory notice to the London Stock Exchange, ensuring full transparency with global market participants. Listing on Euronext Dublin adds a recognized European trading platform to the mix, providing enhanced visibility and credibility among international investors.
For Damac, this funding mechanism represents more than just capital—it signals the company’s readiness to leverage global debt markets for strategic growth. As investor appetite for quality real estate-backed instruments remains strong, this move is likely to attract institutional interest from asset managers, private banks, and sovereign wealth funds.
Looking Ahead
Damac’s senior note offering comes at a time when global real estate financing is increasingly competitive, with investors seeking stable, yield-generating instruments backed by established developers. By tapping into USD-denominated debt, the company not only strengthens its balance sheet but also positions itself for future international projects, partnerships, and expansions.
With J.P. Morgan leading the transaction and a team of top-tier stabilizing banks, the issuance is expected to proceed efficiently, reflecting both investor confidence in Damac and the company’s strong market reputation.
For the global real estate and investment community, the offering underscores the growing role of Middle Eastern developers in international debt markets and highlights the strategic use of senior notes to support ambitious growth plans.
