Dar Al-Arkan closes SAR 1.5 bln senior unsecured sukuk

Dar Al-Arkan Real Estate Development Co. successfully closed the seventh tranche sukuk issuance worth SAR 1.5 billion ($400 million) under its dollar-denominated Islamic sukuk program.

The order book was opened on Feb. 19 and closed on the same day with a seven-year tenor at a profit rate of 6.875% annually, the real estate developer said in a bourse filing.

The issuance received strong turnout from international market participants with the order book reaching SAR 4.31 billion ($1.150 billion).

The company issued 2,000 sukuk at a par value of $200,000 with an annual return of 6.875%.

The sukuk will be fully redeemed on the maturity date, which will falls on Feb. 26, 2027.

Dar Al Arkan has appointed Alkhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank (DIB), Emirates NBD Capital, Mashreq Bank, Nomura, Standard Chartered Bank and Warba Bank to manage the seventh tranche issuance.

The stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will apply to the issuance.

The bonds will be listed on the Irish Stock Exchange (Euronext Dublin), the statement added.

On Feb. 13, Dar Al-Arkan announced a plan to issue seven-year dollar-denominated fixed rate Reg. S senior unsecured sukuk, Argaam reported.