Dar Al-Arkan lists US$1b Sukuk on LFX


KUALA LUMPUR: Dar Al-Arkan International Sukuk Company yesterday listed its landmark US$1 billion (RM3.45 billion) Sukuk Al-Ijara on the Labuan International Financial Exchange (LFX), marking the first Saudi corporate Sukuk to list on the LFX.
The Sukuk was arranged by a consortium of international banks on behalf of Dar Al-Arkan Real Estate Development Company, a leading residential real estate developer in the Kingdom of Saudi Arabia.
The Sukuk has also been listed on the Dubai International Financial Exchange (DIFX). Launched in June, the Sukuk issue received an overwhelming response from institutions across the Middle East, Southeast Asia and Europe.
It was significantly oversubscribed, raising close to US$1.5 billion, with Dar Al-Arkan opting to close the issue at US$1 billion.
The joint lead managers and joint bookrunners of the transaction were ABC Islamic Bank (E.C.), Arab National Bank, Deutsche Bank, Dubai Islamic Bank PJSC, Gulf International Bank B.S.C., Kuwait Finance House (Malaysia) Bhd and Unicorn Investment Bank B.S.C.(c).
Unicorn Investment Bank B.S.C.(c) was also the Syariah and structuring adviser. AmInternational (L) Ltd is the LFX-listing sponsor for the Sukuk.
The landmark five-year issue, based on an Ijara structure, marks the second Sukuk to be issued by Dar Al-Arkan.
In March this year, the company closed its inaugural Sukuk at US$600 million, marking the first Sukuk to be issued by a Saudi corporate in the international capital markets. The inaugural Dar Al-Arkan Sukuk is listed on the DIFX.
In a statement yesterday, LFX board member and Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff, said: “This is truly a landmark event in the history of the LFX.”

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