DIFC Investments Plans to Raise About $700 Million in Sukuk Sale - Bloomberg

DIFC Investments Plans to Raise About $700 Million in Sukuk Sale - Bloomberg:



"DIFC Investments LLC, which owns properties in the Dubai International Financial Center business park, said it plans to raise about $700 million from an Islamic bond sale to repay debt and fund development as borrowing costs decline.




The state-controlled company, which is planning to issue the sukuk before the end of October, will use the proceeds to repay the $650 million outstanding on a syndicated loan, DIFC Governor Essa Kazim said at a news conference in Dubai today. The remainder will be used to develop a 10th building in DIFC’s Gate Village and fund the completion of a connecting corridor across the business park, he said.



DIFC Investments joins companies in the region including Emaar Properties PJSC in selling bonds to take advantage of cheap borrowing costs. The average yield on Middle East bonds fell 20 basis points this year to 4.6 percent on Sept. 19, three basis points from a record low, according to data from JPMorgan’s Middle East Composite Index."



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