Dubai Investments PJSC's property unit hired HSBC Holdings Plc and Citigroup Inc. to sell Islamic bonds early next year as it seeks to refinance an existing sukuk, Bloomberg reports.
Dubai Investments Park Development, which develops and manages property for the holding company, is also working with First Abu Dhabi Bank, Emirates NBD and Dubai Islamic Bank to place the five-year notes, said the people, asking not to be identified because the information is private.
The sale could raise about $500m, one of the people said.
"The DIP sukuk 2014 is maturing in February 2019 and DIPDC is considering refinancing the sukuk through various means including a potential sukuk issuance," Khalid Bin Kalban, chief executive officer and managing director of Dubai Investments, told Bloomberg in an emailed statement without giving further details.
Sales of Islamic bonds in the six-nation Gulf Cooperation Council, which include the two biggest Arab economies of Saudi Arabia and the UAE, have declined 22% this year to $17.4bn.
Dubai Investments, whose businesses span real-estate, manufacturing, financial services, health care and education, posted a 13% decline in nine-month profit to Dh724 million ($197m).