09 Fepuary 2010
Saudi Arabia's Dar Al Arkan Real Estate will likely issue a five-year fixed rate Islamic bond worth between $500 to 750 million by the end of the week, two bankers with knowledge of the deal told Reuters yesterday.& &
The Islamic bond, or sukuk, could be priced to yield between 10.5 and 11 per cent, they said.
The bond could be the first internat-ional issue from the Gulf since Dubai World said in November it planned to restructure $26 billion of debt. try{document.write(_banner_zone('zone9339')); }catch(e){}
"They have been struggling," one banker said, referring to interest in the sukuk.
"They still haven't closed anything and they have been on the road for a long time now. 10.5 per cent is not some-thing that would make me excited. Mid-teens would have been good." &
The roadshow has been held in the Middle East, Europe, Asia and the US.
The new bond will likely be used to refinance a $600 million sukuk due in mid-Fepuary.
© 7Days 2010
