Coherent imaging systems, such as medical ultrasound and synthetic aperture radar (SAR), are subject to corruption from speckle due to sub-resolution scatterers. Since speckle is multiplicative in nature, the constituent image regions become corrupted to different extents. The task of denoising such images requires algorithms specifically designed for removing signal-dependent noise. This paper proposes a novel image denoising algorithm for removing signal-dependent multiplicative noise with diffusion models, called Speckle Denoising Diffusion Probabilistic Models (SDDPM). We derive the mathematical formulations for the forward process, the reverse process, and the training objective. In the forward process, we apply multiplicative noise to a given image and prove that the forward process is Gaussian. We show that the reverse process is also Gaussian and the final training objective can be expressed as the Kullback Leibler (KL) divergence between the forward and reverse processes. As derived in the paper, the final denoising task is a single step process, thereby reducing the denoising time significantly. We have trained our model with natural land-use images and ultrasound images for different noise levels. Extensive experiments centered around two different applications show that SDDPM is robust and performs significantly better than the comparative models even when the images are severely corrupted.