Saudi builder Dar al-Arkan Real Estate Company on Monday said it will repay a $1 billion Islamic bond (sukuk), at maturity on July 16.

'Dar has taken all the steps for redemption through the principal paying agent,' the company said in a statement to Nasdaq Dubai bourse.

Dar, the kingdom's largest property developer, had said earlier that it would use cash and proceeds from land sales to repay the bond.

The company's floating rate sukuk was bid close to par, as it came closer to maturity. Its shares were trading down 3.5 per cent on the Saudi bourse at 1000 GMT. -Reuters