DUBAI May 20 Saudi Arabia's Dar Al Arkan Real
Estate Development Co plans to price a
benchmark-sized, dollar-denominated sukuk of five years duration
this week, a document from lead arrangers said.
Initial price thoughts for the sukuk are at the high 6
percent range, the document said.
Benchmark size traditionally means around $300 million for
issuers classified as high-yield - meaning they pay a higher
interest rate because of their low credit rating.
Dar Al Arkan is rated B+ by Standard & Poor's, four notches
below the lowest investment grade score, albeit with a positive
The developer said on Monday it would talk with
international investors on Tuesday ahead of a potential sukuk.
Dar Al Arkan has chosen 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 as coordinators and bookrunners of the
Abu Dhabi-based Al Hilal Bank, as well as Qatari trio Al
Rayan Investment, Barwa Bank and QInvest are classified as
(Reporting by Azza Al Arabi; Writing by Bernardo Vizcaino;
Editing by David French)