Dar Al Arkan Real Estate Development Company announced the completion today 23/06/2010 (11/07/1431 AH) of a Shari'ah-structured fixed to variable rate swap agreement for 50% of its fourth issue of Islamic Sukuk, previously issued in February 2010, worth 1.7 billion Saudi Riyals (450 million US dollars).
This agreement is part of the company's strategy that seeks to reduce the company's financing cost by taking advantage of the current low variable profit rate, which confirms the strength of the company's financial position. The agreement is part of the company's strategy to minimize the cost of financing for the company by taking advantage of the current low variable profit rates, which continues to support the strength of the company's financial position.
It is worth noting that under this agreement, the annualized dividend rate on the 50% portion of the issuance, amounting to SAR 844 million (USD 225 million) will decrease from 10.75% to the 3-month SIBOR + 7.95%, and the average total financing cost for the Company during 2010 is expected to decrease to 5.02%.
This agreement is part of the company's strategy that seeks to reduce the company's financing cost by taking advantage of the current low variable profit rate, which confirms the strength of the company's financial position. The agreement is part of the company's strategy to minimize the cost of financing for the company by taking advantage of the current low variable profit rates, which continues to support the strength of the company's financial position.
It is worth noting that under this agreement, the annualized dividend rate on the 50% portion of the issuance, amounting to SAR 844 million (USD 225 million) will decrease from 10.75% to the 3-month SIBOR + 7.95%, and the average total financing cost for the Company during 2010 is expected to decrease to 5.02%.
The Company's average total financing cost for the year 2010 is expected to decrease to 5.02%.
