Riyadh – Mubasher: Jabal Omar Development is planning to raise SAR 4 billion by issuing SAR-denominated sukuk within the next few months, Reuters reported on Monday, citing sources as saying.

It is not yet clear if the issuance will be carried out on a single stage or on multiple stages, the sources added, noting that they were unsure whether the sukuk issuance would be used for new funding or for financing the company’s existing debt. 

Bank Al Bilad was assigned to manage the sukuk issuance; however, there may be other banks involved to help manage the issuance, the sources said.

In April, Jabal Omar CEO Yaser Al Sharif revealed that his company was planning to enter the sukuk market.

The Saudi-listed company announced in June that it was working on converting an SAR 3 billion commercial loan into a Sharia-compliant Murabaha facility, expecting the conversion process to be completed in the third quarter of 2017.