Dar Al Arkan is to issue dollar sukuk

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 is traditionally around $300 million for high-yield issuers; who pay a greater interest rate due to their low credit rating.

Dar Al Arkan is rated B+ with a positive outlook by Standard & Poor's, four notches below the lowest investment grade score.

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 book runners of the potential deal.