Another sukuk issue by Saudi firm draws investors

[DUBAI] Dar Al Arkan's third Islamic bond sale in a year is attracting buyers as investors bet the Saudi Arabian company's real estate assets outweigh a junk credit rating at Standard & Poor's (S&P).

Dar Al Arkan Real Estate Development Co is poised to sell a benchmark US dollar-denominated sukuk due 2019, according to two people with knowledge of the offering, who asked not to be identified.

The yield on the company's May 2018 sukuk slid 107 basis points this year to 6.17 per cent at 12.29pm in Riyadh, according to data compiled by Bloomberg.