Dar Al-Arkan raises $500 mln from sukuk issuance

Dar Al-Arkan Real Estate Development Co. has successfully closed the fifth tranche of its dollar-denominated international sukuk program, raising SAR 1.875 billion ($500 million), the developer said in a statement to Tadawul on Thursday.

The five-year sukuk will have an annual profit rate of 6.875 percent, it added.

The sukuk issue received “significant interest from international market participants with the order book reaching SAR 4.5 billion ($ 1.2 billion),” the statement said.

Last week, the developer had appointed Alkhair Capital, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, Nomura, Noor Bank and Standard Chartered Bank to manage the fifth issuance.