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.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is Africa's investment dream still on track?

Is Africa's investment dream still on track?

It was the new bright spot for global investors, but widespread...

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Fees from the Middle East reached $581m during the first nine...

Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Most Discussed
sponsoredTracking