Saudi’s Dar Al Arkan raises $400m from sukuk issue

Dubai: 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 per cent, it added. This was tighter than the 6.75 per cent earmarked earlier on Wednesday and well inside the high-6s per cent 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.