Riyadh – Mubasher: Dar Al-Arkan Real Estate Development Company, listed on the Saudi Stock Exchange (Tadawul), has listed $600 million Sukuk on Nasdaq Dubai.
The five-year Sukuk issuance was more than 2.5 times oversubscribed, with investors from the Middle East, Europe, and Asia showing great interest in the issue, which is due in February 2025 with a coupon rate of 6.75%.
“With over $1.5 billion of subscriptions, our latest Sukuk issuance was very well received by the market. It is a testament to our strong relationship with the global debt capital markets and a big vote of confidence from investors in our stewardship of their capital,” said Dar Al-Arkan Chairman, Yousef Bin Abdullah Al-Shalash.
The listing supports the development activities of the real estate developer, including flagship integrated residential communities across Saudi Arabia, as well as its ‘I Love Florence Tower’ in Downtown Dubai, according to a statement by Nasdaq Dubai.
This marks Dar Al-Arkan’s tenth Sukuk issuance since 2007 and the sixth tranche of its current $2-billion programme, bringing Dar Al-Arkan’s total Sukuk value listed on Nasdaq Dubai to $1.6 billion after two $500-million listings in 2017 and 2018.
“The funds raised provide us with the capital to dynamically invest in our business activities across Saudi Arabia as we see the market conditions improving and prepare for the next upcycle. As the region’s international exchange, Nasdaq Dubai provides our Sukuk with high visibility to regional and international investors as well as an efficient listing platform regulated to international standards,” the company’s Chairman added.
Commenting on the listing, Abdul Wahed Al Fahim, Nasdaq Dubai Chairman, said, “This listing underlines the increasing success of Nasdaq Dubai’s strategy of attracting high-quality issuers of Sukuk across a wide range of industry sectors.”
Dar Al-Arkan reported a surge in profits by 267.19% during the third quarter (Q3) of 2019, with profits reaching SAR 134.87 million.