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Almarai’s Sukuk issues over 4 years equal capital

Almarai’s Sukuk issues over 4 years equal capital
Photo Credit: Arabianeye - Reuters
ALMARAI
2280
-1.25% 55.20 -0.70

By Mohamed Idries

Riyadh – Mubasher: Saudi Arabia’s dairy producer Almarai has recently announced it would issue a senior Sukuk worth SAR 2 billion.

The move is aimed to help finance investment plans, according to the company.

The sukuk will be offered to local investors and is subject to market conditions, it said in its statement, adding it had mandated HSBC Saudi Arabia and Samba Capital and Investment Management to act as joint lead managers.

In 2012, Almarai launched its first Sukuk issue, of which the first tranche was valued at SAR 1 billion. The issue was covered 4.7 times. Meanwhile, the second tranche was valued at SAR 1.3 billion and was covered more than 1.9 times.

The Tadawul-listed company issued in 2013 perpetual senior Sukuk callable after five years, a total value of SAR 1.7 billion.

Almarai has set an investment programme for the years 2016-2020, at a total value of SAR 21 billion, out of which Sukuk reached SAR 2 billion.

Accordingly, the total value of the company’s Sukuk issues reach SAR 6 billion, which is equal to the company’s capital.

Translated by Sayed Abdel Rahman