Dar Al-Arkan redeems sukuk

Thursday, 11 March 2010

Dar Al-Arkan Real Estate Development Company (Dar Al-Arkan) has redeemed its inaugural sukuk issued in March 2007. The repayment was made on schedule.

Issued by DAAR International Sukuk Company, the landmark three-year US$600 million issue marked the first sukuk to be issued by a Saudi company in the international capital markets. Launched as a US$425 issue, it received an overwhelming response from financial institutions across Europe, Southeast Asia and the GCC region.

In January 2010, Moody’s Investor Service assigned a Ba2 rating to Dar Al-Arkan, the largest developer in Saudi Arabia by market value. Moody’s noted that the Ba2 rating was one of the highest industry ratings; the mean rating of global homebuilding companies is Ba3. Standard & Poor’s Ratings Service has assigned a BB- rating to the company.