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First Saudi sukuk lists on DIFX
Saudi property developer Dar Al Arkan Real Estate Development Company (Daar) today listed a $600 million sukuk on the Dubai International Financial Exchange (DIFX).
It is the first sukuk, Islamic bonds, from a Saudi issuer to list on the DIFX and brings the number of sukuk on the DIFX to six, with a total value of $8.98 billion.
DIFX, located in the Dubai International Financial Centre (DIFC), said the listing underlined the exchange's stature as the biggest in the world for Sharia-compliant bonds by listed value.
The Daar sukuk is also the first to be issued by a Saudi company in the international capital markets and is listed solely on the DIFX and sold to investors in Europe, southeast Asia and the Middle East after being significantly oversubscribed, the exchange said.
"As one of Saudi Arabia's largest residential property developers, Daar is a significant addition to our list of issuers. With more than 100 Sukuk issued globally last year, this asset class is growing fast and we look forward to many more listings," said Per Larsson, DIFX chief executive.
The Islamic bonds issuer is Daar International Sukuk Company, which was specially created for the purpose, and the financial advisers were ABC Islamic Bank, Standard Bank, Arab National Bank, Unicorn Investment Bank and WestLB.
"With its international status and its leading role in Islamic finance, the DIFX is the right venue to give our Sukuk high visibility globally and in the region," said Abdullatif Alshalash, Daar managing director.
Earlier this year Dubai Islamic Bank listed a $750 million sukuk on DIFX, after selling the Islamic securities to investors in the Europe, Asia and Middle East.
Other companies that have listed sukuk on DIFX include Nakheel, which listed a world record $3.52 billion sukuk on DIFX last year, Dubai Ports, Customs and Free Zone Corporation (PCFC), and Aabar Petroleum Investment Company (PJSC).
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