Saudi Arabia’s Dar Al Arkan Real Estate Development Co. will use the $600 million raised from its latest sukuk issuance to expand and develop existing projects, according to a news report.

The company has launched two projects in Riyadh and Jeddah with a total value exceeding 40 billion Saudi riyals ($10.70 billion) this year,  chairman Yousef Al Shelash told Al Arabiya, an Arabic news channel.

These projects require infrastructure and superstructure development, stable cash flows and strong liquidity, he stated.

Al Shelash said Saudi Arabia was the least affected by the Iran war and expects no significant increase in financing costs in the near term.

Last week, the developer launched the sukuk transaction with ITPs in the 7.75 percent area before tightening on the back of oversubscription, as the final books topped $1.25 billion, excluding JLM interest.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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