Landmark US$1,000,000,000 Sukuk issue for Dar Al-Arkan
Bahrain, 17 July 2007 - Dar Al-Arkan Real Estate Development Company (Dar Al-Arkan), a leading residential real estate developer in the Kingdom of Saudi Arabia, announces the successful close of a groundbreaking US$1 billion Sukuk issued through Dar Al-Arkan International Sukuk Company and arranged on the company’s behalf by a consortium of international banks.Launched in June, the Sukuk issue received an overwhelming response from institutions across the Middle East, South East Asia and Europe. It was significantly oversubscribed, raising close to US$1.5 billion, with Dar Al-Arkan opting to close the issue at US$1 billion. The Joint Lead Managers and Joint Bookrunners of the transaction were ABC Islamic Bank (E.C.), Arab National Bank, Deutsche Bank, Dubai Islamic Bank, Gulf International Bank, Kuwait Finance House (Malaysia) and Unicorn Investment Bank. Unicorn Investment Bank was also the Shari’ah and Structuring Advisor.
The landmark 5-year issue, based on an Ijara structure, marks the second Sukuk to be issued by Dar Al-Arkan. In March this year, the company closed its inaugural Sukuk at US$600 million, marking the first Sukuk to be issued by a Saudi corporate in the international capital markets.
Commenting on the Sukuk’s success, Abdullatif Al-Shalash, Managing Director and board member of Dar Al-Arkan said: “We are delighted with the overwhelming response to our second Sukuk issue, which affirms the strength of Dar Al Arkan’s business model, our strong growth prospects and the confidence of the international financial community in our strategy. Dar Al-Arkan is committed to playing a leading role in providing affordable housing solutions that meet international standards for middle income families across the Kingdom of Saudi Arabia.”
Majid Al Sayed Bader Al-Refai, Managing Director and Chief Executive Officer of Unicorn Investment Bank, commented: “This second landmark transaction for Dar Al-Arkan represents a further important milestone in the development of the Islamic capital markets, and its enormous success demonstrates the demand that exists globally for well-structured Shari’ah-compliant investment opportunities. We look forward to continuing to partner with regional and international financial institutions to expand the boundaries of the Islamic finance industry.”