DUBAI, May 22 (Reuters) - Saudi Arabia’s Dar Al Arkan Real Estate Development Co raised $400 million through an Islamic bond, the developer said in a statement on Thursday, with strong demand for the paper helping to reduce the cost at which it borrowed.
The developer attracted a final order book of more than $1 billion for its five year sukuk, it said in a regulatory filing.
Final pricing came at a profit rate of 6.5 percent, it added. This was tighter than the 6.75 percent earmarked earlier on Wednesday and well inside the high-6s percent given as initial pricing thoughts on Tuesday.
Alkhair Capital - a unit of Bahrain-based Bank Alkhair, whose chairman is the same as Dar Al Arkan’s - Deutsche Bank , Emirates NBD and Goldman Sachs were coordinators and bookrunners of the deal.
Abu Dhabi-based Al Hilal Bank, as well as Qatari trio Al Rayan Investment, Barwa Bank and QInvest were also bookrunners. (Reporting by Archana Narayanan; Editing by David French)