Unicorn Investment Bank

Closed in February 2007, the groundbreaking US$600 million DAAR International Sukuk marked the first Sukuk to be issued by a Saudi corporate in the international capital markets. The landmark 3-year issue, based on an Ijara structure, was issued on behalf of Dar Al-Arkan Real Estate Development Company (Dar Al-Arkan), a leading residential real estate developer in the Kingdom of Saudi Arabia.

Launched as a US$425 million issue by Unicorn in cooperation with ABC Islamic Bank E.C., Arab National Bank, Standard Bank Plc and West LB AG (together the Joint Lead Managers and Joint Bookrunners), the DAAR International Sukuk received an overwhelming response from financial institutions across Europe, South East Asia and the GCC region. The Sukuk, which was significantly oversubscribed, raised close to US$700 million, with Dar Al-Arkan opting to increase the issue size to US$600 million.

The DAAR Sukuk marked a new stage in the rapid evolution of the Islamic capital markets, and its success underscored both the continuing appetite for well-structured Sukuk transactions and the emergence of real estate as an important asset class in the GCC region.

The DAAR International Sukuk was listed on the Dubai International Financial Exchange (DIFX) in May 2007, marking the first issue from Saudi Arabia to be listed on the Exchange.

Established in 1994, Dar Al-Arkan aims to provide affordable, international standard housing solutions to middle income families across Saudi Arabia. The company has been assigned a corporate rating of A- by Capital Intelligence.