Saudi Dar al Arkan Says Sold First Tranche of $750 Million Sukuk

Thursday, May 23, 2013

(This article was first published on Wednesday)

RIYADH--Dar Al Arkan Real Estate Development Co. (4300.SA), Saudi Arabia's largest real-estate developer by assets, said Wednesday it has sold the first tranche of a 2.8 billion Saudi riyal ($750 million) international Islamic bond, or sukuk, program.

Orders for the first, five-year sukuk tranche opened Monday and closed Tuesday, the developer said on the website of the Saudi stock exchange. The first tranche was for SAR1.69 billion, at a profit rate of 5.75% annually.

The remaining tranches of the sukuk will be issued over the next 12 months, Dar al Arkan said. The sukuk program aims to fund the company's projects, the company had said earlier.

Dar Al Arkan in July last year repaid a 3.75 billion Saudi riyal ($1 billion) sukuk, which was issued as part of its Islamic structured debt program initiated in 2007 to help finance its projects in the kingdom.

The developer's share prices closed down 0.56% at SAR8.9 Tuesday.

Write to Ellen Knickmeyer at ellen.knickmeyer@dowjones.com

(END) Dow Jones Newswires

23-05-13 0327GMT