Saudi construction giant raises $400m through sukuk

Strong demand sees developer Dar Al Arkan attracting a final order book of more than $1bn

Dar Al Arkan founder and chairman Youssef Al Shelash. (Photo for illustrative purposes only)

Dar Al Arkan founder and chairman Youssef Al Shelash. (Photo for illustrative purposes only)

Saudi Arabia's Dar Al Arkan Real Estate Development Co raised $400 million through an Islamic bond, the developer said in a statement on Thursday, with strong demand for the paper helping to reduce the cost at which it borrowed.

The developer attracted a final order book of more than $1 billion for its five year sukuk, it said in a regulatory filing.

Final pricing came at a profit rate of 6.5 percent, it added. This was tighter than the 6.75 percent earmarked earlier on Wednesday and well inside the high-6s percent given as initial pricing thoughts on Tuesday.

Alkhair Capital - a unit of Bahrain-based Bank Alkhair, whose chairman is the same as Dar Al Arkan's - Deutsche Bank , Emirates NBD and Goldman Sachs were coordinators and bookrunners of the deal.

Abu Dhabi-based Al Hilal Bank, as well as Qatari trio Al Rayan Investment, Barwa Bank and QInvest were also bookrunners.

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