Dar Al-Arkan to repay ​remaining ​Sukuk over 3-year period, says chairman

Dar Al-Arkan Real-Estate Development Company (DAAR) plans to repay its three remaining Sukuk issues, or Islamic bonds, over the coming three years, said Yousef Al-Shalash, chairman of the company.

The remaining​ issues are relatively small, accounting for one third of total repayments, Al-Shalash was quoted as saying in CNBC Arabiya.

“Sukuk is the best long-term financing instrument, being tailored for the real estate projects”, he added.

Standard & Poor’s rating agency recently downgraded the developer’s outlook to negative from stable, while affirming its B+ corporate credit rating.

Al-Shalash pointed out that credit rating agencies are generally painting a negative forecast for the region based on lower oil prices, which will indeed place pressure on the real estate sector.

As for dividend payout, Al-Shalash said it is the most crucial issue for shareholders. However, it is related to several financial factors, and it is mainly proposed by the board of directors to the general meeting.

Dar Al-Arkan recently said it has repaid its SAR 1.7 billion ($450 million) Sukuk, which is due this coming Wednesday, according to data available on Argaam.