Saudi Arabia's Dar Al Arkan raises $600m through five-year sukuk
The sukuk issuance is a part of the developer's Islamic Sukuk Programme announced on 2 October 2019
Saudi Arabia’s Tadawul-listed developer Dar Al Arkan Real Estate Development Company has closed the $600m (SAR2.5bn) sixth tranche of its sukuk issuance under its Islamic Sukuk Programme, which was announced by the developer on 2 October 2019, with the bonds set to be listed on the Irish Stock Exchange (Euronext Dublin).
In a stock market filing, the company said the order book for the sukuk was opened on 9 October 2019 and closed on the same day, adding that the sukuk was issued for a five-year period at a profit rate of 6.75% each year.
The company said that the sukuk issuace gained “significance interest [from] “international market partcipants” and the order book reached $1.7bn (SAR6.3bn).
Dar Al Arkan appointed financial institutions such as Alkhair Capital, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, Noor Bank, Standard Chartered Bank, and Warba Bank to manage the sukuk issuance’s sixth tranche.
The financial programme was carried out under the stabilisation rules of the local Financial Conduct Authority, and International Capital Market Association.