Saudi dairy firm Almarai sells $347m sukuk

The issue attracted orders worth SAR2.4bn from institutional investors

Saudi Arabian dairy and food producer Almarai Co has completed the sale of a SAR1.3bn (US$346.7m) Islamic bond, or sukuk, the company said in a bourse filing on Monday.

The issue, which has a floating interest rate, attracted orders worth SAR2.4bn from institutional investors inside Saudi Arabia, the statement said. The interest rate was not specified.

It is the second local currency sukuk from the Gulf's largest dairy firm - it sold a SAR1bn offering in March 2012.

Both deals form part of the same SAR2.3bn sukuk programme.

Almarai said on March 4 that it had appointed NCB Capital, the investment banking arm of state-owned National Commercial Bank, to arrange meetings with Saudi fixed income investors ahead of the sukuk's sale.

Shares in Almarai ended 1.1 percent higher on Monday, against a broader market gain of 0.5 percent. The sukuk announcement came after the market close.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
The flood gates open

The flood gates open

Turkey’s new fondness for sukuk has been met with increasing...

"Sleeping giant" debt market awakes in Saudi Arabia

After years in which the growth of Saudi Arabia's bond market...

Gulf bond issuers see opportunity in Malaysia

Gulf bond issuers see opportunity in Malaysia

Gulf looks to tap Malaysian investors with ringgit issues; country...

Most Discussed
  • 17
    Countdown to VAT: are Gulf businesses ready?

    I feel with VAT in place from 2018, retailers, SMEs will figure out ways of Tax-evasion as it happens in most of the developing economies unless authorities... more

    Tuesday, 14 February 2017 1:10 PM - Diya Pardasani
  • 15
    Dubai likely to lose 'shopper's paradise' status: S&P

    It's no longer a shoppers paradise. Maybe for the ignorant few but with the availability of the internet to compare prices worldwide one doesn't need to... more

    Monday, 20 February 2017 1:25 PM - Syed
  • 10
    Dubai real estate: which way will it go?

    well the mortgage rates are going to go up even more as the US will increase rates so the central bank here will also have to increase proportionately... more

    Wednesday, 15 February 2017 1:28 PM - Bill
sponsoredTracking