Riyadh – Mubasher: Dar Al Arkan Real Estate Development Company said it will redeem SAR 1.5 billion ($400 million) 2019 Sukuk from the company’s internal cash reserves.

The sukuk, listed on the Irish Stock Exchange and Nasdaq Dubai, are due to mature on 28 May 2019, the Saudi Arabian real estate developer said in a statement, adding that it has no plans to issue new sukuk in the meantime.

“Dar Al Arkan, is in an enviable liquidity position at present, with Cash and Cash equivalents near SAR 5 billion, we plan to redeem the coming 2019 redemption out of cash reserves. Given the health of the business and our strong free cash flow conversion expectations, we see no immediate need to issue any new Sukuks for the foreseeable future,” said Andy Raheja, CFO of Dar Al Arkan Real Estate Development Company.

During the full-year 2018, the Saudi Arabia-based firm reported an 8.1% year-on-year profit decline to SAR 508.81 million, from SAR 553.37 million ($147.53 million).

In May 2018, the Saudi real estate developer announced that it would repay sukuk at a combined value of SAR 1.687 billion ($450 million) to Nasdaq Dubai, on 24 May.