Dar Al Arkan lists $600 mn sukuk on Nasdaq Dubai

The sukuk, which has a coupon rate of 6.75%, was oversubscribed by more than two-fold

Saudi Arabia’s Dar Al Arkan, which is also one of the Middle East’s leading real estate developers, has listed $600 million sukuk on Nasdaq Dubai. The five-year sukuk, which has a coupon rate of 6.75 percent, was oversubscribed more than two-fold, according to local media reports.

The sukuk received significant interest from investors across the Middle East, Europe, and Asia. The fund raised from the issue of the dollar-denominated sukuk will support Dar Al Arkan’s ongoing projects.

This brings Dar Al Arkan’s total sukuk value listed on Nasdaq Dubai to $1.6 billion. Reportedly, this is the real estate developer’s 10th issue since 2007.

Yousef Bin Abdullah Al Shalash, chairman of Dar Al Arkan told the media, “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.”

He added, “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.”

Earlier this year, Dar Al Arkan, which is also Saudi Arabia’s largest public listed developer, redeemed its $400 million sukuk after maturity in the month of May 2019. The sukuk was listed on Nasdaq Dubai and the Irish Stock Exchange.

The developer reported a 92 percent drop in its profit year-on-year in the first quarter of 2019.