Dar Al Arkan Real Estate Development Company, the leading and largest publicly listed Saudi developer, announce today their intention to redeem the US$ 400 million (SAR 1.5 billion) 2019 Sukuk, due to mature on May 28th 2019, and listed on Irish Stock Exchange & NASDAQ Dubai, out of the company’s internal cash reserves.
Furthermore, they declare that Dar Al Arkan Real Estate Development Company has no imminent plans and is not in discussions with advisors to issue new Sukuks at this time.
Mr. Andy Raheja, CFO of Dar Al Arkan Real Estate Development Company, commented: “Dar Al Arkan, is in an enviable liquidity position at present, with Cash and Cash equivalents near SAR 5 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”.
The US$ 400 million (SAR 1.5 billion) Sukuk was issued on May 27th 2014, maturing on May 28th 2019 and 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 US$ 1 billion (SAR 3.75 billion) of Sukuks, divided equally over the 2022 and 2023 maturities.
“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. 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”; said CFO Andy Raheja.