Dar Al-Arkan to repay $587m sukuk in March
14 Feb 2010
(MENAFN) Dar Al-Arkan, Saudi Arabia’s biggest property developer by market value, said that it has enough cash to repay its $586.7 million worth of an Islamic bond, or sukuk, that matures in March, Reuters reported.
There is $586 million which is an Islamic bond that matures next month and the rest of 133 million are short-term revolving facilities. The company’s Chief Financial Officer, Benoit Bellerose, assured that the firm has sufficient cash to repay its creditors in March.
This announcement came after Dar Al-Arkan’s raising of a lower-than-expected $450 million from a new five-year sukuk priced at 10.75 percent. Bellerose said that this is a very good price given the market conditions, noting that this was the only debt transaction done last week for emerging markets which demonstrates the interest of investors around the world in Dar al-Arkan and in the region.
Before this issue, Dar Al-Arkan’s total borrowings grew to $2.22 billion in 2009, up from $2.03 billion in 2008. Of these debts, the firm will have to repay $720 million before the end of 2010, according to its financial statements.