Mall Built on Saudi Sand Spells Sukuk Success: Islamic Finance
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Dar Al Arkan’s third Islamic bond sale in a year is attracting buyers as investors bet the Saudi Arabian company’s real estate assets outweigh a junk credit rating at Standard & Poor’s.
Dar Al Arkan Real Estate Development Co. is poised to sell a benchmark U.S. dollar-denominated sukuk due 2019, according to two people with knowledge of the offering, who asked not to be identified because the information isn’t public. The yield on the company’s May 2018 sukuk slid 107 basis points this year to 6.17 percent at 12:29 p.m. in Riyadh, according to data compiled by Bloomberg. Rates on Middle East Islamic bonds fell 50 basis points in the period to 4.14 percent, JPMorgan Chase & co. indexes show.