Dubai Investments Park postpones Islamic bonds sale

Dubai Investments Park (DIP), a subsidiary of Dubai Investments, has postponed its planned issue of US dollar-denominated sukuk, or Islamic bonds, saying more attractive funding alternatives were available.

DIP, a residential, commercial and industrial development, had mandated Citi, HSBC, Dubai Islamic Bank, Emirates NBD Capital and First Abu Dhabi Bank as lead managers and bookrunners for the planned debt issue, it said last week.

It was planning a five-year sukuk sale to refinance outstanding notes, according to a statement issued on Wednesday by one of the banks leading the deal.

Other Dubai property developers such as Emaar and Nakheel have put plans to issue dollar bonds on hold to avoid paying a yield premium to attract investors wary of Dubai’s property price slide, sources told Reuters this month.

Read: Dubai property developers put bond plans on hold

The park, which includes a university, six schools and five operational hotels, will continue to monitor markets and plans to re-engage with investors at an appropriate time, the statement said.

Property prices in Dubai have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales.

The market downturn has put pressure on property developers’ existing bonds, with yields rising sharply in recent months, underperforming other sectors.