Saudi Arabia's leading listed real estate developer Dar Al Arkan has successfully raised $600 million under its sukuk (Islamic bond) programme.

Established in 1994, Dar Al Arkan has a current market capitalisation of about SR13 billion ($3.4 billion) with assets of SR27 billion ($7.1 billion). It is rated B1 by Moody's with a stable outlook.

The five-year sukuk was issued at a discount at $98.841, with a coupon rate of 6.75% to produce a 7% yield and based on the principles of the Islamic wakalah, said a statement from Warba Bank, which acted as the joint lead arranger and book-runner for the five-year sukuk issuance.

The leading Kuwaiti 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 $2-billion programme.

The other big names involved in the transaction were Alkhair Capital, Deutsche Bank (B&D)/Dubai Islamic Bank/Emirates NBD Capital/Goldman Sachs International/Nomura International/Noor Bank/Standard Chartered Bank.

Warba's participation in sukuk issuances reflects the commitment to develop its investment banking capabilities in foreign markets by continuing to inject necessary funding for international firms in the regional and global markets through its financing portfolio, which witnessed a remarkable growth of 39% to hit KD1.931 billion until June 30, 2019, said its top official.

The sukuk issuance was successful in generating 2.7 times over subscription with the order book reaching over $1.6 billion, remarked Thuwaini Khalid Al Thuwaini, the chief investment officer (banking group) at Warba Bank.

"We are pleased to play such a lead role in this sukuk issuance for Dar Al Arkan Real Estate Development," noted Al Thuwaini.

Since 1994, Dar Al-Arkan has influenced the real estate development sector in Saudi Arabia with the most innovative residential solutions, developing 15,000 residential units and 500,000 square meters of luxury commercial space, he added.-TradeArabia News Service

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