Damac says its property development arm has raised $100 million via a sukuk, or Islamic bond, which will partly be used to acquire land.

The Dubai developer said that Emirates NBD Capital is the sole bookrunner and lead manager on the transaction for the 18-month private-placement sukuk.

The issuance was made via Damac Real Estate Development Limited (DRED), a company 100% owned by the Dubai Financial Market-listed Damac Properties.

“The certificates are rated BB by Standard & Poor’s in line with Damac’s international ratings,” the developer said in an emailed statement.

Adil Taqi, Chief Financial Officer of Damac, said part of the money will go towards buying land.

“The proceeds of the offering will be used for general corporate purposes and for the acquisition of land plots to strengthen and extend the company’s development pipeline, in accordance with our medium term funding strategy,” he said.