Saudi Arabia's Dar Al Arkan repays $400m five-year sukuk before time

Issued on 28 May, 2014, the Saudi developer's sukuk is listed on Nasdaq Dubai and the Irish Stock Exchange

 Yousef Al Shelash is chairman of Dar Al Arkan.
© ITP Media Group / Rajesh Raghav
Yousef Al Shelash is chairman of Dar Al Arkan.

Dar Al Arkan, the Saudi Arabian real estate company behind the Roberto Cavalli-designed Mirabilia Villas in Riyadh, has repaid its 2014-issued $400m (SAR1.5bn) Islamic sukuk.

In a filing on Saudi bourse Tadawul, the developer, chaired by Yousef Al Shelash, said it bought back part of the sukuk – often referred to as a 'shari'a -compliant bond' – for $70.5m (SAR364m) in 2019.

The developer said it transferred the remaining principal – standing at $329.5m (SAR1.236bn) – and profit to the designated account.

Sukuk account holders will receive funds on 28 May, 2019, it added.

“[Dar Al Arkan] would like to thank its investor base, specifically all the sukuk-holders who participated in this transaction, for repeatedly placing their trust in [the company], its board, and its management,” the filing read.

According to online intelligence portal, the 2019 series-3 medium-term note was issued on 28 May, 2014, with a five-year tenor.

It is listed on Nasdaq Dubai and the Irish Stock Exchange.

The use of sukuk is a key aspect of Saudi Arabia-headquartered Dar Al-Arkan’s financing and capital strategy.

April 2018 saw the firm list a $500m (SAR1.87bn) five-year sukuk on Nasdaq Dubai, which the firm said was oversubscribed, with interest registered from Middle Eastern, European, and Asian investors.

Speaking at the time, Yousef Bin Abdullah Al-Shelash, chairman of Dar Al-Arkan, said: “Our listing on Nasdaq Dubai [...] provides us with excellent links and visibility to investors in our own region and around the world, as well as a respected listing platform regulated to international standards."

According to the group’s interim financial results on Saudi bourse Tadawul, Q1 net profits at Dar Al Arkan stood at $6.8m (SAR25.5m), a 92% fall on Q1 2018’s corresponding figure of $88.3m (SAR331.1m).

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