Dar Al Arkan to repay $987m debt

Jeddah, February 20, 2012

Saudi Arabia's biggest property developer Dar Al Arkan plans to repay about 3.7 billion riyals ($986.6 million) of debt this year, its chief financial officer said.

'Beyond the SR2.5 billion cash in hand on December 31, we plan to mostly rely on expected sales of approximately SR800 million per quarter to finance sukuk repayment,' Anand Raheja said.

Dar Al Arkan has SR4.6 billion of debt maturing this year, including $1 billion sukuk, SR200 million which have been rolled over, and SR700 million which is expected to be refinanced through an asset-based facility, he said.

'We plan to raise a seven to eight-year Islamic facility of about SR700 million against the Al Qasr Mall,' Raheja said, referring to one of its projects in Riyadh. 'The net debt that we plan to repay this year is about SR3.7 billion,' he said.

In 2010, it raised $450 million from a five-year sukuk just in time to refinance a $600 million sukuk maturing in March 2010.-Reuters

Tags: Saudi | property | sukuk | Dar Al Arkan | debt | repay |