KUWAIT: Warba Bank acted as Joint Lead Arranger and Book-runner on the successfully placed Sukuk issuance for Saudi Arabia’s leading listed real estate developer Dar Al-Arkan, rated Baa2 by Moody’s with a stable outlook. The five-year $600 million Sukuk was issued at a discount at $98.841, with a coupon rate of 6.75 percent to produce a 7.00 percent yield and based on the principles of the Islamic wakalah. Warba Bank was appointed alongside other regional and international financial institutions to manage the company’s sixth sukuk issuance which listed on Irish Stock Exchange under its $2 billion program.
Demand for sukuk was strong as evidenced by the oversubscription. Warba Bank’s participation in Sukuk issuances and the growth of its assets’ portfolio reflects its commitment to develop its investment banking capabilities in foreign markets by continuing to inject the necessary financing for international companies in the regional and global markets through its financing portfolio, which witnessed a remarkable growth of 39 percent to reach KD 1.931 billion until June 30, 2019.
Thuwaini Khalid Al-Thuwaini, Chief Investment Banking Group at Warba Bank said that the Sukuk issuance was successful in generating 2.7 times over subscription with the order book reaching over $1.6 billion. “We are pleased play such a lead role in this sukuk issuance for Dar Al- Arkan Real Estate Development,” he said.
Al-Thuwaini said that the transaction followed a comprehensive marketing strategy and road show aimed at informing the international fixed income community on the company’s most recent development. He pointed out that a senior management delegation met with investors in Singapore, Hong Kong, Abu Dhabi, Dubai and London.
Al-Thuwaini pointed out that the Transaction was successfully led by Alkhair Capital, Deutsche Bank (B&D) / Dubai Islamic Bank / Emirates NBD Capital / Goldman Sachs International / Nomura International / Noor Bank / Standard Chartered Bank and Warba Bank as Joint Lead Managers. He elaborated that the law firm Allen and Overy acted as legal counsel for the banks, while Latham and Watkins represented Dar Al-Arkan.
Al-Thuwaini added that Warba Bank continues to support the business sector in emerging markets by providing them with superior financing and investment solutions that are flexible and efficient. This is based on the Bank’s strategy to establish Warba Bank as a leader in the corporate and investment sector both in Kuwait and in international markets.
