Arabian Centres Company (Cenomi Centers) Announces securing up to SAR 5.25 billion Shariah compliant facilities
| Element List | Explanation |
|---|---|
| Introduction | Arabian Centres Company (“Cenomi Centers” or “the Company”) announces that it has signed a secured Shariah compliant facility agreement consisting of term and revolving murabaha facilities (the “New Facilities”) that benefit from improved pricing and covenants package in comparison to existing facilities, with a syndicate of banks and for a total amount of SAR 5.25 billion. The proceeds of the facilities will be used in the repayment of amounts outstanding under its existing facilities (the “Existing Facilities”), and to support the future growth of the Company. |
| Date of obtaining the funding | 2024-02-13 Corresponding to 1445-08-03 |
| Financing entity | HSBC Saudi Arabia led the arranging of this syndication as exclusive Financial Coordinator and Lead Sustainability Coordinator. The Saudi National Bank, Saudi Awwal Bank and Arab National Bank as bookrunners and mandated lead arrangers, Commercial Bank of Dubai, Mashreqbank PSC and QNB KSA as bookrunners, The Saudi National Bank as murabaha SAR investment agent, The Saudi National Bank as murabaha USD investment agent, The Saudi National Bank as global agent, The Saudi National Bank as security agent, and Mashreqbank PSC as Sustainability Co-coordinator, Saudi Awwal Bank and The Saudi National Bank as account banks, Arab National Bank, Saudi Awwal Bank and The Saudi National Bank as term SAR murabaha participants, Commercial Bank of Dubai and Mashreqbank PSC as term USD murabaha participants, The Saudi National Bank and QNB KSA as revolving SAR murabaha participants, and Commercial Bank of Dubai and Mashreqbank PSC as revolving USD murabaha participants. |
| Financing amount. | Total facilities of up to SAR 5.25 billion. |
| Financing duration. | A) Sustainability-linked Revolving Murabaha facility – 4 years (subject to two one-year extension options);
B) Sustainability-linked Term Murabaha - Tranche A – 12 years; and
C) Sustainability-linked Term Murabaha - Tranche B – 12 years. |
| Guarantees offered for the financing | In order to secure the facilities provided, promissory notes (covering the facility size and any profit payments) shall be provided to the finance parties, and the Company will also create a pledge over certain moveable assets and provide mortgages over certain immovable properties in favor of the financiers. |
| Financing objective | The amounts utilized under the facilities shall be applied by the Company towards the:
a) repayment of amounts outstanding under the Existing Facilities;
b) payment of fees, costs and expenses incurred in connection with the New Facilities; and
c) general corporate and working capital purposes of the Company. |
| Related Parties | No related parties on this transaction. |
| Additional Information | The Company was successful in securing better terms of funding, including an improved covenants package and better pricing terms in comparison to its Existing Facilities.
The New Facilities are structured as sustainability-linked financings, adhering to the LMA’s Sustainability-Linked Loan Principles.
Through the transaction’s sustainability-linked mechanism, Cenomi Centers commits to certain targets with respect to three sustainability Key Performance Indicators (KPIs) which relate to: a reduction in carbon emissions; an increase in the percentage of assets connected to the KSA national grid; and an increase in the percentage of women in certain leadership roles at the Company. |
| Attached Documents |  |
Comments