Saudi-based Dar Al Arkan to redeem $400 million Sukuk

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The Sukuk was issued on 27 May 2014, maturing on 28 May 2019 and it was the seventh such issue by the real estate development company.

Tuesday 23, April 2019 BY KUDAKWASHE MUZORIWA

Saudi Arabia’s Dar Al Arkan Real Estate Development Company plans to redeem the $400 million (SAR 1.5 billion) 2019 Sukuk, due to mature on 28 May 2019.

The Sukuk, which is listed on Irish Stock Exchange and Nasdaq Dubai, will be paid out of the company’s internal cash reserves.

Andy Raheja, the CFO of Dar Al Arkan Real Estate Development Company, said, “Dar Al Arkan, is in an enviable liquidity position at present, with Cash and Cash equivalents near SAR 5 billion, we plan to redeem the coming 2019 redemption out of cash reserves.”

Over the last decade, Dar Al Arkan has issued nine international Sukuks, post redemption of 2019 Sukuk the company will continue to have $1 billion (SAR 3.75 billion) of Sukuks, divided equally over the 2022 and 2023 maturities.

“Given the health of the business and our strong free cash flow conversion expectations, we see no immediate need to issue any new Sukuks for the foreseeable future,” Raheja said.

TAGS : Sukuk, Dar Al Arkan Real Estate Development Company, Irish Stock Exchange, Nasdaq Dubai

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