ZAWYA: Dar Al Arkan to use sukuk proceeds to drive growth, develop existing projects: Report

About this update from Dar Al Arkan Real Estate Development Co.

Staff WriterSaudi Arabia’s Dar Al Arkan Real Estate Development Co. will use the $600 million raised from its latest sukuk issuance to expand and develop existing projects, according to a news report.The company has launched two projects in Riyadh and Jeddah with a total value exceeding 40 billion Saudi riyals ($10.70 billion) this year, chairman Yousef Al Shelash told Al Arabiya, an Arabic news channel.These projects require infrastructure and superstructure development, stable cash flows and strong liquidity, he stated.Al Shelash said Saudi Arabia was the least affected by the Iran war and expects no significant increase in financing costs in the near term.Last week, the developer launched the sukuk transaction with ITPs in the 7.75 percent area before tightening on the back of oversubscription, as the final books topped $1.25 billion, excluding JLM interest.(Editing by Anoop Menon) ([email protected])Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

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