Saudi's Almarai picks banks for hybrid sukuk sale

Gulf's largest dairy firm mandates for banks for sale of $453m Islamic bond

Saudi Arabian dairy producer Almarai Co has mandated four banks to arrange the sale of a 1.7 billion riyals ($453.3 million) Islamic hybrid bond, or sukuk, the company said on Wednesday.

The Gulf's largest dairy firm has mandated the investment banking arm of Banque Saudi Fransi, BNP Paribas , HSBC's Saudi Arabian unit and Standard Chartered to hold investor meetings during the next two weeks, it said in a statement posted on the Saudi bourse.

The issue will have a perpetual maturity, meaning that the company can count the proceeds towards its equity position. It is Almarai's first such issue and one of the first ever hybrid bonds from a Saudi corporate.

The offering, part of a 15.7 billion riyal 5-year capital funding program, will be denominated in Saudi riyals and sold to sophisticated investors residing in the Kingdom of Saudi Arabia.

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 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