GFH reveals key role played in Dar Al Arkan’s $400mn sukuk sale

Bahrain’s GFH Financial Group has announced it acted as joint lead manager, alongside other parties, on the pricing and issuance of a $400mn Islamic bond (sukuk) earlier this year by Saudi developer Dar Al Arkan.

On 30 June, Dar Al Arkan’s sale – a three-year sukuk – was met with strong demand from both regional and international investors. This marks the 12th issuance for the Saudi developer till date. Listed on Tadawul, the Saudi stock exchange, Dar Al Arkan is the largest Saudi developer by market value and has a portfolio of assets valued at more than $8.5bn. Early in July 2022, Dar Al Arkan said it started work on its first European luxury residential project.

Commenting on GFH’s key role in the issuance of the sukuk, Salem Patel, Chief Investment Officer, Debt and Capital Markets, at GFH, said: “We are pleased to act as a key JLM on another successful issuance by Dar Al Arkan. Having played a central role in syndicating the sukuk, the transaction demonstrates GFH’s strong capital market capabilities and our ability to lead on important transactions to support our clients’ aspirations and growth. We will continue to strengthen and expand our capital markets and advisory services to further support our clients.”

Since the beginning of this year, GFH had acted as an arranger/advisor on nearly $1.5bn sukuk issuances, including Infracorp’s perpetual sukuk, the first green sukuk issuance by a Bahrain corporate, he added. In April, GFH’s UK subsidiary concluded an off-market sale of Tesco Distribution Centre for $135mn.

Dar Al Arkan has several high-profile projects are spread across Saudi Arabia and overseas in key markets such as Dubai and Sarajevo (Bosnia). Proceeds from the issuance will be used to further support the company’s development goals and pipeline of world-class projects, it said.

Dar Al Arkan CEO Andy Raheja said: “GFH was a key regional anchor, and their support was invaluable in helping to successfully execute this trade despite challenging market conditions. We would like to take this opportunity to thank the team in GFH for their pivotal role and wish the group all success in their DCM journey.”

In February, Deloitte said it had restructured $2bn of Azmeel Contracting and Construction’s debt.

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