Real Estate Development Company’s Islamic bond yields surged to a record last week on investor concern. Saudi Arabia’s biggest property company by assets may struggle to pay its debt amid a slump in profits.
The yield on the 10.75 per cent sukuk due February 2015 gained 96 basis points, or 0.96 of a percentage point, last week to 14.45 per cent on Friday, Bloomberg prices show. “The market is speculating about Dar Al Arkan’s capacity to repay its debts,” Jitendra Garg, a Riyadh-based financial analyst………………………………………Full Article: Source