Riyadh – Mubasher: National Shipping Company of Saudi Arabia (Bahri) has issued a seven-year SAR-denominated senior unsecured Sukuk at a total value of SAR 3.90 billion, with the offering being oversubscribed by 1.95 times.

Bahri will use the proceeds from the issue to refinance the existing SAR-denominated Sukuk which will mature this month, the listed firm recently announced.

The company offered the Sukuk through a private placement at a floating profit rate of 120 basis points, higher than the six-month Saudi Arabian Interbank Offered Rate (SAIBOR).

Ahmed Ali Alsubaey, CEO of Bahri, said: “It is a proud moment for Bahri as it also complements one of the objectives of the Financial Sector Development Program under Saudi Vision 2030 to develop and deepen the capital markets in Saudi Arabia.”

Fayez Al Asmari, CFO of Bahri, noted: “Despite the adverse market environment, Bahri’s Sukuk achieved almost two times oversubscription and was able to diversify away from bank investors, and as a result, strengthened the quality of the order book by allocating a significant amount of the funds raised to asset managers, pension funds, and corporate investors.”

Earlier in July 2022, Bahri announced the closure of the SAR-denominated Sukuk offering.