Company Profile:
Based in Riyadh (KSA), Dar Al Arkan is a public shareholding company listed on the Saudi Stock Exchange since 2007. Dar Al Arkan is one of the leading real estate companies in the Middle East with SR10.8 billion in capital and SR26 billion in assets. Since 1994, Dar Al Arkan has had a significant influence on the real estate development sector in Saudi Arabia. The company has invested in innovative residential solutions, which resulted in the development of 15,000 housing units and 500,000 sq.m of luxury retail space.
Challenge:
Dar Al Arkan in relation to its US$1.8 billion Sukuk Issuance Program together with the first issuance of US$450 million under such a program in May 2013 and subsequent issuances of US$300 million in November 2013, US$400 million in May 2014. As international investors became more familiar with both the credit and the Sukuk structure, the success of the earlier transactions encouraged Dar Al Arkan to utilize the Sukuk program structure for its subsequent issuances, thus allowing for repeat issuances with minimal cost. Dar Al Arkan required guidance and assistance to deploy the investment plan for the roadshow: In order that investment managers would agree to invest into a portfolio of Sukuk contracts and to ensure the preservation of the value of the Sukuk portfolio.
Solution:
The roadshow preparation was organized into four thematic sections with Dar Al Arkan, and the overall purpose was to deploy a well-integrated volume of sessions.
Sager IR prepared the cohesive roadshow presentation including company profile, activities, financial performance, and the investment case. Had multiple dry run sessions with the team to ensure readiness. Prepared a list of possible Q&A and monitored the body language and the length of answers.
Result:
The Sukuk portfolio met the certain investment conditions contained in the investment management agreement, which led to 2x oversubscription of the issuance which consisted of US$500 million in April 2017.