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Mon 28 May 2007 05:54 PM

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Dar Al Arkan lists $600m sukuk

The property developer is the first Saudi issuer to list Islamic bonds on the DIFX.

Saudi Arabian property developer Dar Al Arkan Real Estate Development Company (DAAR) has today listed a $600 million sukuk on the Dubai International Financial Exchange (DIFX).

It is the first sukuk from a Saudi issuer to list on the DIFX and brings the total value of sukuk listed on the exchange to $8.98 billion.

Abdullatif Alshalash, managing director of DAAR, said: "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. The sukuk's success with investors demonstrates the growing appetite for well structured securities in this asset class, notably in the real estate sector."

The sukuk is a three-year issue based on an ijara lease structure. It is listed solely on the DIFX and was sold to investors in Europe, Southeast Asia and the Middle East.

The financial advisers on the issue were ABC Islamic Bank, Standard Bank, Arab National Bank, Unicorn Investment Bank and WestLB.

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