UPDATE 1-UAE's DAMAC gives initial price guidance for dollar sukuk - lead
(Adds details, background)
By Davide Barbuscia
DUBAI, April 10 DAMAC Properties, the second-largest listed Dubai developer, has set initial price guidance for its planned five-year dollar sukuk in the mid 6 percent area, a document from one of the banks leading the deal showed on Monday.
DAMAC's outstanding five-year sukuk maturing in 2019 was yielding around 4.4 percent on Monday, Thomson Reuters data showed.
The new Regulation S senior, unsecured Islamic bond will be of benchmark size, which usually means upwards of $500 million. The sukuk is expected to price on April 11, the document said.
The company announced at the end of March it planned to buy back up to $250 million of its outstanding sukuk maturing in 2019, and it said earlier on Monday that it had received tenders of about $197.7 million from sukuk holders.
DAMAC is a business partner of U.S. President Donald Trump and has recently opened a Trump-branded golf club in Dubai.
The company has a BB credit rating with a stable outlook by Standard & Poor's.
BofA Merrill Lynch, Emirates NBD Capital, HSBC, and VTB Capital are the joint bookrunners for the new debt transaction.
(Reporting by Davide Barbuscia, editing by Louise Heavens)