Dar Al Arkan set to redeem $400m Islamic bond
RIYADH, April 25, 2019
Saudi Arabia’s Dar Al Arkan Real Estate Development Company said it aims to redeem its $400-million sukuk (Islamic bond) by using internal cash reserves.
The sukuk, listed on Irish Stock Exchange and Nasdaq Dubai on May 27, 2014, is set to mature on May 28. It was the seventh such issue by Dar Al Arkan Real Estate Development Company.
Over the last decade, Dar Al Arkan has issued nine international sukuks and post redemption of 2019 sukuk and Dar will continue to have $1 billion of sukuks, divided equally over the 2022 and 2023 maturities.
The sukuk, listed on Irish Stock Exchange and Nasdaq Dubai, is due to mature on May 28, 2019.
CEO Andy Raheja said: "Dar Al Arkan is in an enviable liquidity position at present, with cash and cash equivalents near SR5 billion, we plan to redeem the coming 2019 redemption out of cash reserves. Given the health of the business and our strong free cash flow conversion expectations, we see no immediate need to issue any new Sukuks for the foreseeable future."
"We see our decision to pay down debt from cash reserves as a sign of confidence in our current strategy and belief in our ability to meet our commitments through operating cash flows," stated Raheja.
"We are very proud of our relationship with global debt capital markets, and we expect our debt investors to see this redemption positively. We take this opportunity to thank them for their continued trust and support to the company, its board and its management," he added.-TradeArabia News Service
