Goldman Sachs Group has led its first sukuk in more than three years after helping a Saudi property developer, Dar Al Arkan Real Estate Development raise $450 million.
The bank was a lead arranger on Dar Al Arkan’s sukuk on 21 May 2013, re-forging links with the Riyadh-based real estate company after helping arrange the sale of its $450 million five-year bonds in February 2010, Bloomberg reported.
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"This is an area of growing importance as a source of funding for borrowers," Martin Weber, head of debt capital markets for Europe Middle East & Africa growth markets at Goldman Sachs told Bloomberg.
"Our presence in the region and connectivity with local issuers has gone up. You have seen us on Dar Al Arkan, and there is going to be more," Weber said.
Goldman Sachs is seeking to catch up with US competitors as demand accelerates for securities that conform to Islamic principles. According to data compiled by Bloomberg, global sales of Islamic bonds reached a record $46.5 billion last year, while issuance has increased 4% to $18.3 billion in 2013.
Citigroup and Morgan Stanley are U.S. banks that have appeared among the global top 10 underwriters for Islamic bonds in the last five years, according to data compiled by Bloomberg.
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