The three-year sukuk will list on the Dubai International Financial Exchange (DIFX).

Its debut issue, a $3.52bn sukuk listed on the DIFX in December 2006. Holders of both issues have the right to subscribe to any future initial public offering of shares in the company.

JP Morgan is sole book runner, lead manager and underwriter for the latest issue that has an option to be increased to $1bn. The issue will be marketed globally to institutional investors.

Kar Tung Quek, chief financial officer of Nakheel, is confident that the recent turmoil in the international credit markets will not dampen demand. “JP Morgan has done its research,” he says. “It has underwritten the entire $750m deal, so it is confident [of demand].”

Sukuk issuance in the GCC is accelerating faster than that of conventional bonds, according to law firm Trowers & Hamlins. More sukuks are issued than conventional bonds. The total sukuk and corporate bond issuance in 2003 was almost equal in value with $975m of sukuk launched compared with $964m conventional bonds, excluding government issues. By June 2007, sukuk issuance had increased 14 times to $14.5bn, where as conventional bond issuance had increased 11 times to $11.1bn.

Sukuks accounted for more than half of corporate bond issuance for the year ending in June. Most issues were in the real estate sector