Dar Al Arkan Real Estate Development Company of Saudi Arabia is in the midst of preparations to sell a benchmark sized Islamic bond or sukuk. This comes after the firm announced its initial price range for the dollar denominated deal, according to a document released to the public from its lead managers.

The sukuk is a five year bond issue earmarked to earn around 6.25% according to the document. When a bond issue is said to be benchmark sized, it is assumed to be worth around US$500 million.

Beforehand, Dar Al Arkan informed the Saudi Arabian stock exchange regulatory authorities that it would be conducting discussions and meetings with fixed income investors starting Monday before the conduct of the sukuk sale.

The company has chosen Bank Al Khair of Bahrain, Deutsche Bank AG, Emirates NBD, Goldman Sachs together with Masraf Al Rayan and QInvest to facilitate the meetings with the possible investors.