Dar Al Arkan, the Saudi Arabian real estate developer, after its previous announcements has now tightened the price range of its planned sukuk issue. This advice came from lead bankers managing the Islamic bond issue for the firm.
The company is projecting to raise at least US$300 million from the five year bond had revised its prices, lowering the amounts by 6% from its initial yield of 6.25%, according to the regulatory documentation filed.
Despite such change, lead arrangers of the sukuk had updated the documentation to indicate that the order books were well over the benchmark size of US$500 million.
The real estate developer has chosen Bank Al Khair of Bahrain, Deutsche Bank, Emirates NBD, Masraf Al Rayan and QInvest of Qatar and Goldman Sachs to arrange the sukuk sale.
Previously, Dal Al Arkan had issued a five year US dollar denominated Islamic bond issue back in 2010. It had priced the bonds at 10.75% for a volume of US$450 million. This was the first bond available from a Saudi Arabian company available to investors located in the United States. The issue was also made during the time of regional property slowdown and the then ongoing Dubai credit crisis, affecting investor sentiment throughout the Gulf region.
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