Bahrain-based GFH Financial Group has announced that it had acted as joint lead manager, alongside other parties, on the pricing and issuance of a $400-million Islamic bond (sukuk) by leading Saudi developer Dar Al Arkan.
The sale of the three-year sukuk, which took place on June 30, was met with strong demand from both regional and international investors. This marks the 12th market issuance for the Saudi company till date.
Dar Al Arkan, which is listed on Tadawul, is the largest Saudi developer by market value and has a portfolio of assets valued at more than $8.5 billion.
Its iconic projects are spread across Saudi Arabia and also overseas including in key markets such as Dubai and Sarajevo (Bosnia). Proceeds from the issuance will be used to further support the company's development goals and pipeline of world-class projects, it added.
Commenting on its key role, Salem Patel, Chief Investment Officer, Debt and Capital Markets, at GFH, said: "We are pleased to act as a key JLM on another successful issuance by Dar Al Arkan. Having played a central role in syndicating the sukuk, the transaction demonstrates GFH's strong capital market capabilities and our ability to lead on important transactions to support our clients' aspirations and growth."
"We will continue to strengthen and expand our capital markets and advisory services to further support our clients," he noted.
Since the beginning of this year, GFH had acted as an arranger/advisor on nearly $1.5 billion sukuk issuances, including Infracorp’s perpetual sukuk, the first green sukuk issuance by a Bahrain corporate.
Dar Al Arkan CEO Andy Raheja said: "GFH was a key regional anchor and their support was invaluable in helping to successfully execute this trade despite challenging market conditions."
"We would like to take this opportunity to thank the team in GFH for their pivotal role and wish the group all success in their DCM journey," he added.
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