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Najran Cement Company announces a partial buy back and cancellation of its Sukuk

NAJRAN CEMENT 3002 -3.56% 10.28 -0.38
Element List Explanation
Announcement Detail Najran Cement Company announces that on Thursday 12 December 2019, it did a buy-back and cancelation of 45 of the company’s Sukuk, with a total value of SAR 45,000,000, representing 11.25% of the total issuance value, and the buy-back was made at the nominal value of the Sukuk and was funded using the company's own resources.

It should be noted that on June 14th, 2015, the company issued local Shariah-compliant Sukuk in Saudi Riyals with a total value of SAR 400,000,000 which was offered by way of a private placement at nominal value and due in June 2020.

As a result of this buy-back transaction, the purchased Sukuk will be canceled according to the terms and conditions of the Sukuk contract, thus the total value of the private issuance will be 355,000,000 SAR.

The expected financial impact of this transaction is a decrease in financial charges for the upcoming period as a result of a decrease in the issuance gross value. Note that the financial impact might change because it is linked to the value of the 3-month SAIBOR.

There are no related parties in the buy-back transaction.

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