|28 October, 2019

Warba Bank jointly along with other lead managers succeed in arranging a US$ 60 million Sukuk issuance for Dar Al-Arkan real estate development company

Saudi Arabia's leading listed real estate developer Dar Al-Arkan successfully raised US$ 600 million five year Sukuk issuance under its Sukuk Programme

Thuwaini Al-Thuwaini

Thuwaini Al-Thuwaini

  • Investor demand for the Sukuk issuance was strong as evidenced by a US$ 1.6 billon orderbook, representing an oversubscription rate of 2.7 times, reflecting the company’s robust credit fundamentals of the issuer.
  • Warba Bank continues to support the business sector and emerging markets by providing them with top-notch financing solutions

Kuwait: Warba Bank acted as Joint Lead Arranger and Book-runner on the successfully placed Sukuk issuance for Saudi Arabia's leading listed real estate developer Dar Al-Arkan, rated Baa2 by Moody’s with a stable outlook. The five year US$ 600 million Sukuk was issued at a discount at US $ 98.841, with a coupon rate of 6.75% to produce a 7.00%  yield and based on the principles of the Islamic wakalah. Warba Bank was appointed alongside other regional and international financial institutions to manage the company’s sixth sukuk issuance which listed on Irish Stock Exchange under it’s US$ 2 billion program.

Demand for sukuk was strong as evidenced by the oversubscription. Warba Bank's participation in Sukuk issuances and the growth of its assets’ portfolio  reflects its commitment to develop its investment banking capabilities in foreign markets by continuing to inject the necessary financing for international companies in the regional and global markets through its financing portfolio, which witnessed a remarkable growth of 39% to reach 1.931 billion Kuwaiti dinars until June 30, 2019.

Thuwaini Khalid Al-Thuwaini, Chief Investment Banking Group at Warba Bank said that the Sukuk issuance was successful in generating 2.7 times over subscription with the order book reaching over US$ 1.6 billion. We are pleased play such a lead role in this sukuk issuance for Dar Al- Arkan Real Estate Development.

Al-Thuwaini said that the transaction followed a comprehensive marketing strategy and road show aimed at informing the international fixed income community on the company’s most recent development. He pointed out that a senior management delegation met with investors in Singapore, Hong Kong, Abu Dhabi, Dubai and London.

Al-Thuwaini pointed out that the Transaction was successfully led by Alkhair Capital, Deutsche Bank (B&D) / Dubai Islamic Bank / Emirates NBD Capital / Goldman Sachs International / Nomura International / Noor Bank / Standard Chartered Bank and Warba Bank as Joint Lead Managers. He elaborated that the law firm Allen and Overy acted as legal counsel for the banks, while Latham and Watkins represented Dar Al-Arkan.

Al-Thuwaini added that Warba Bank continues to support the business sector in emerging markets by providing them with superior financing and investment solutions that are flexible and efficient. This is based on the Bank's strategy to establish Warba Bank as a leader in the corporate and investment sector both in Kuwait and in international markets.

-Ends-

About Dar Al-Arkan Real Estate Development Company

Dar Al-Arkan Real Estate Development Company ("Dar Al-Arkan"), a leading real estate development company listed in Saudi Arabia, was established in 1994 with a current market capitalization of about SR 13 billion with assets of SR 27 billion. It is rated B1 by Moody's with a stable outlook.

Since 1994, Dar Al-Arkan has influenced the real estate development sector in the Kingdom of Saudi Arabia with the most innovative residential solutions, developing 15,000 residential units and 500,000 square meters of luxury commercial space. Dar Al-Arkan has achieved international success as the largest real estate development company in Saudi Arabia, through cooperation with experts around the world. The projects are versatile, with the best international standards in construction, maintenance and punctuality, so all the projects have provided the residents with a modern lifestyle that suits their aspirations.

© Press Release 2019

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