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.
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