Islamic Banking

Saudi Developer Lists Billion Dollar Bond on DIFX

Chris Owen 25 July 2007

Saudi Developer Lists Billion Dollar Bond on DIFX

Saudi property developer Dar Al Arkan Real Estate Development Company yesterday listed a $1 billion dollar Islamic bond on the Dubai International Financial Exchange. The value of the DIFX’s Sukuk listings is now $13.78 billion, or 48 per cent by value of all Sukuk listed on exchanges worldwide. The new issue follows a $600 million Sukuk that Dar Al Arkan also listed on the DIFX in May. Both were sold to investors in Europe, south-east Asia and the Middle East. The issuer is Dar Al Arkan International Sukuk Company, which was specially created by Dar Al Arkan for the purpose. Its advisors were ABC Islamic Bank, Arab National Bank, Deutsche Bank, Dubai Islamic Bank, Kuwait Finance House (Malaysia) Berhad and Unicorn Investment Bank. DIFX chief executive Per Larsson said: “More than 60 Sukuk have been issued globally this year, up from 50 in the same period of 2006, and we expect further listings as we expand our involvement with the sector. Dar Al Arkan is our first Saudi Arabian issuer and the first overseas company to list two Sukuk on the DIFX.”

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