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Wed 20 Nov 2019 02:10 PM

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Saudi mall operator issues $500m sukuk, completes $1.9bn restructuring

Move comes as Arabian Centres Company plans to add more than half a million square metres of additional retail space by 2024

Saudi mall operator issues $500m sukuk, completes $1.9bn restructuring

Arabian Centres Company is a the Saudi-based owner, developer and operator of shopping centres.

Arabian Centres Company, the Saudi-based owner, developer and operator of shopping centres, announced on Wednesday the completion of the offering and pricing of its $500 million sukuk issuance.

The sukuk is part of a $1.9 billion refinancing package comprising both the sukuk and new bank debt, with settlement of the sukuk to take place on November 26, the company said.

The fixed-rate, US dollar-denominated sukuk, with a tenor of 5 years, carries a coupon rate of 5.375 percent and the issue was 4 times oversubscribed, with non GCC international investors accounting for 84 percent of the total transaction allocation, it added.

The move comes as the company is planning six projects to provide more than half a million square metres of additional retail space by 2024.

"This transaction represents a milestone capital raise for the private sector in Saudi Arabia giving Arabian Centres access to global debt capital markets, and more favourable credit terms, which optimizes the capital structure commensurate with its strong financial position," the company said in a statement.

“We are very pleased to further diversify our funding mix by tapping into the debt capital markets,” said Olivier Nougarou, CEO at ACC. “As we expand our portfolio of prime leisure hubs in the hingdom’s most important population centres, this transaction will provide ACC with optimum cash resources and liquidity to pursue our medium-term expansion plans.”

He added: “We believe that the surest way to ensure sustainable growth and drive footfall in our properties is to deepen and broaden the company’s market reach by investing further in the lifestyle experiences offered at our properties.”

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