Dar Al-Arkan Real Estate Development Company (DAAR) has announced repayment of its Sukuk II, which is due on Monday (July 16), and amounts to SR 3.75 billion. DAAR transferred the total principal sum to Deutsche Bank (the principal paying agents) on Thursday and the sukuk account holders will receive funds on Monday, a company press release said.
This second sukuk was part of DAAR's Islamic structured debt program (Sukuk program), initiated in 2007. The aim of the program was to provide high quality long-term external financing to complement the company's robust internal cash flow at a time of strong growth in the Saudi real estate market. In the last five years, an extremely challenging period for the international debt markets, DAAR has successfully issued four sukuk (3 international, one domestic) raising a total of SR 8.4 billion. Of this, 2 sukuk totaling SR 6 billion have been repaid on time and satisfying all obligations, representing 71.4 percent of DAAR's sukuk program.
The Islamic Sukuk Program has aided the company in the implementation of the company's various projects over the Kingdom. DAAR provided more than 16,000 residential units, which contributed in fulfilling the residential demand in Saudi Arabia.
Dar Al-Arkan's sukuk program has attracted many high-profile international and local investors. Sukuk II drew a diversified investor base at both, global and regional levels. International investors included sovereign, pension and investment funds as well as financial institutions dispersed across the Middle East, America, Asia and Europe.
Furthermore, the sukuk have enjoyed active support from prominent local financial institutions and investment funds. In addition to broadening the investor base and raising the profile internationally, the sukuk investors have provided DAAR with financial flexibility and liquidity during a period of required investment in its projects and the medium term future of the business.
Dar Al-Arkan sukuk have been listed in different international markets including the UAE, Bahrain (BSE), UK (LSE) and Malaysia (Labuan SE). Consequently, DAAR has successfully met and complied with the highest standards of corporate governance and disclosure prevailing in these international markets.
Dar Al-Arkan would like to thank its investor base, specifically all the sukuk-holders who participated in this transaction for placing their trust in Dar Al-Arkan, its board and its management.
Dar Al-Arkan to repay SR 3.75 billion Sukuk II
