Dar Al Arkan’s $450m 5.75% five year sukuk bucked the recent trend by performing well in the secondary market after pricing on Tuesday. The paper traded up to 100.75 bid on Wednesday, having been priced at 99.47. And despite the general market sell-off…
Saudi developer Dar Al Arkan has lowered price guidance on its planned Islamic bond issue. The company, which is planning to raise at least $300 million from a five-year Islamic bond, revised its guidance lower to around 6 percent from initial yield gu…
Dar Al-Arkan stated that it will not be necessary to return to the debt markets to help repay a $1 billion sukuk maturing in 2012 but does not rule out having to make some asset sales.
Dar Al-Arkan’s 2012 sukuk last traded at 82 percent of par value….
Dar Al Arkan shares are down almost 40 per cent in the past six months and the company said this week it would need to sell some assets in order to pay down debt. And all this inspite of the fact that the Saudi property market is booming.
The problem i…
Dubai property developer Nakheel’s trade creditors, unpaid for months, will be offered a hefty 10 percent return, a starting point for negotiations with trade creditors of the company, on a planned Islamic bond as Dubai tries to unblock a cycle of stalled bill payments to kick start its economy.
Dubai unveiled a $9.5 billion (6.1 billion pounds) rescue plan for Nakheel’s parent, state-owned Dubai World, last month, which calls for Nakheel’s trade creditors to get repayment of 40 percent in cash and 60 percent in a tradable security.
The offer is a generous one — especially in light of Dubai World’s opening offer to bank lenders of just one percent on two new tranches of debt maturing in five and eight years — and signals the trade creditors’ dominant position in debt talks.
The government is placing a great deal of importance on trade creditors because if they do not receive cash flow, it will put pressure on construction and real estate markets, which will affect workers at the firms and hurt the overall economy, he said.
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