A $300m five-year sukuk issued by Dubai Investment Park, part of Dubai Investments, has proved popular among investors, closing more than 12 times oversubscribed.

The final orderbook closed at $4bn. It is the first Islamic bond to be issued in Dubai in 2014, and will act as a benchmark for future issuances.

The sukuk was originally priced at 300 basis points over midswaps. But the pricing guidance was tightened with the bond closing at 260 basis points.

Local banks Al-Hilal Bank, Dubai Islamic Bank and Emirates NBD, along with US bank Citigroup were appointed to arrange the Islamic bond. Alpen Capital is the financial adviser to the issuer.

The issuance attracted investors due both to the timing of the sukuk and the credit profile of the issuer.

“There have not been many sukuk issues lately to meet the demand within the Islamic domain,” Al Soner Guney, fixed income fund manager at National Bank of Abu Dhabi Asset Management, tells MEED.

He adds that the issuer has a “strong credit with resilient cash flow streams”, benefiting from the continued growth of the UAE’s economy.

Dubai Investment Park will use $218m of the issuance to refinance existing debt. A total of $10m will be used to finance the completion of phase 8 of its mixed-use property development in Dubai.

The 430,000 square-metre phase 8 is set to cost AED325m ($88.4m) across two stages. Dubai Investments said at the beginning of the year that the project would be completed within the first quarter of 2014.

The development is expected to be a hub for logistics services, incorporating hundreds of warehouses and industrial units. The first stage of phase 8 was completed in mid-2012 and is fully leased with 80 per cent occupancy.