Saudi Arabia’s Dar al-Arkan Real Estate Development Company issued a five-year SR1.69bn ($450m) sukuk (Islamic bond) at a 5.75 per cent coupon on 22 May, the developer announced. It was oversubscribed more than 3.7 times.

Bahrain-based Bank Alkhair, Germany’s Deustche Bank, the US’ Goldman Sachs and Dubai-based Emirates NBD Capital acted as bookrunners on the transaction.

The issue was the first tranche of a SR 2.8bn ($750m) sukuk programme, which will be sold in multiple tranches over a 12-month period.

US ratings agency Standard & Poor’s (S&P) is expected to assign a B+ rating to the issue. S&P recently affirmed Dar Al-Arkan’s B+ credit rating and revised its outlook from ‘stable’ to ‘positive’.

So far, Dar Al Arkan has issued four sukuk, previously raising $450m in 2010 and $1.6bn in 2007. The company also raised SR750m through a locally issued sukuk in 2009.