Saudi Almarai kicks-off US dollar-denominated sukuk Tuesday

Saudi Almarai kicks-off US dollar-denominated sukuk Tuesday
The issue’s magnitude will be subject to the market conditions
Almarai
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Riyadh – Mubasher: Almarai Co on Tuesday announced the beginning of US dollar-denominated sukuk issue that will be under the fixed rate RegS Senior system.

The issue’s magnitude will be subject to the market conditions, while it will end on 27 February, according to a statement to the Saudi Stock Exchange (Tadawul).

The Saudi food and beverage firm further explained that the minimum amount for subscription is $200,000 and multiples of $1,000.

First Abu Dhabi Bank (FAB), Gulf International Bank, HSBC Bank plc, J.P. Morgan, and Standard Chartered Bank will lead manage the US dollar-denominated Islamic bonds.

Almarai said that the listing price, par value, and returns of the five-year sukuk will be specified subject to market conditions.

The Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) rules will be applied on the issuance, and the sukuk will be listed on the Irish Stock Exchange (Euronext Dublin).

On 19 February, Almarai said it would meet with a number of investors to issue US dollar-denominated sukuk that will be under the fixed rate RegS Senior system over the coming period.

Moody's Investors Service on Tuesday assigned a (P)Baa3 senior unsecured rating with a stable outlook to Almarai Co.’s potential sukuk issuance.