First tranche of sukuk in March this year raised US$266.6m and was 4.7 times oversubscribed
Saudi Arabian dairy and food producer Almarai Company plans to issue the second tranche of a riyal-denominated Islamic bond programme in the coming months to private investors, the company said in a bourse on Monday.
The Gulf's largest dairy firm raised SAR1bn (US$266.6m) through the first tranche in March in a deal which was 4.7 times oversubscribed.
"This second tranche of sukuk will be a private offering to sophisticated investors resident in the Kingdom of Saudi Arabia," the company statement said.
Proceeds from the sukuk are seen helping finance Almarai's US$4.2bn investment programme which is aimed to expand its business between 2013 to 2017.
Almarai has been keen to expand its footprint outside its core presence in the Gulf region. In December it acquired Fondomonte SA, which owns and operates firms in Argentina, to secure feed for its dairy herd and poultry business.
The company's third quarter earnings rose 4.7 percent but fell short of analysts forecasts as higher commodity prices and expansion costs ate into earnings, it said in October.
Shares in Almarai are up more than 20 percent this year.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
All the best to Almarai Company to issue the second tranche.
there is a rumour that al marai might be investing into the pakistani food industry. the rumour says that they are acquiring 12% of Engro Foods Limited. Is any of this is true?