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
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 sukuk.com, 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).