Saudi Arabia’s Dar Al Arkan Real Estate will likely issue a five-year fixed rate Islamic bond worth between $500 to 750 million by the end of the week, two bankers with knowledge of the deal told Reuters yesterday.
The Islamic bond, or sukuk, could be priced to yield between 10.5 and 11 per cent, they said.
The bond could be the first internat-ional issue from the Gulf since Dubai World said in November it planned to restructure $26 billion of debt.
“They have been struggling,” one banker said, referring to interest in the sukuk.
“They still haven’t closed anything and they have been on the road for a long time now. 10.5 per cent is not some-thing that would make me excited. Mid-teens would have been good.”
The roadshow has been held in the Middle East, Europe, Asia and the US.
The new bond will likely be used to refinance a $600 million sukuk due in mid-February.
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