DAAR issues international sukuk

DAAR issues international sukuk

Published: May 22, 2013

Goldmans, Deutsche and others lead first tranche of Saudi real-estate developer’s Islamic finance programme.

Dar Al-Arkan (DAAR), a Saudi real-estate developer, has raised SAR1.69bn (US$450mn) through an international sukuk.

The five-year sukuk was issued with a profit rate of 5.75%. The order book closed at some SAR6.2bn.

The sukuk is the first issuance from DAAR’s SAR2.8bn programme, announced last week. Money raised will be used to fund the company’s projects.

Bank Al Khair, Goldman Sachs, Deutsche Bank, Emirates NBD Capital, Masraf Al Rayan and QInvest led the deal.