Further to the announcement made by Dar Al Arkan Real Estate Development Company (DAAR) on 16 February 2020, DAAR is pleased to announce the successful closing of the seventh tranche Sukuk issuance under its USD denominated Islamic Sukuk Programme with a size of SAR 1.5 billion (USD 400 million). The order book for the Sukuk was opened on Wednesday 19th of February 2020 and closed on the same day. With a 7-year tenor at a profit rate of 6.875 % per annum. The issuance received significant interest from international market participants with the order book reaching SAR 4.31 billion (US$ 1.150 billion). Dar Al Arkan has appointed Alkhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreq Bank, Nomura, Standard Chartered Bank and Warba Bank to manage the seventh tranche issuance.
Issuance Type
US$ fixed rate RegS Senior Unsecured Sukuk
Issuance Amount
SAR 1.5 billion (USD 400 million)
Total number of (Bonds/Sukuk)
2,000
Par Value (Bonds/Sukuk)
US$200,000
Return (Bonds/Sukuk)
6.875% per annum
Maturity (Bonds/Sukuk)
26February 2027
Terms of Redemption
Full redemption on maturity
Additional Information
The stabilisation rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance. The bonds will be listed on the Irish Stock Exchange (Euronext Dublin).
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