Al-Marai’s first international Sukuk issuance received approval from international investors, exceeding 10 times the value of those Sukuk, which amounted to $ 500 million.
The offering showed a strong credit strength for Almarai, as it achieved the highest purchase orders received by a Saudi company, with a diversity of investors with a distribution ratio of more than 60% to investors from outside the Middle East.
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The issuance period is 5 years with a profit of 4.311% due in March 2024.
Almarai Sukuk is the first denominated in US dollars by a food and beverage company in the Gulf Cooperation Council states, and is the first international version with a high credit rating by a Saudi company not affiliated with a government agency.
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The company launched a major promotional campaign for investors worldwide in Hong Kong, Singapore, the United Arab Emirates and the United Kingdom, between February 21 and 25, 2019.
The initial price for a one-day offering was 225 basis points, and the final price was set at 180 basis points above the 5-year average dollar swaps, a decrease of 45 basis points.
The offer is scheduled to close on March 5, under usual closing conditions with expectations for the sukuk rating on the closing date (Baa) by Moody's, and (BBB) by Standard & Poor's .
Almarai chose First Abu Dhabi Bank and HSBC as global underwriting coordinators, while First Abu Dhabi Bank, Gulf International Bank, HSBC and Standard Chartered Bank appointed the lead underwriting managers. Participants.
Almarai is the largest producer and distributor of food and beverages in the Middle East, and the largest vertically integrated dairy company in the world, which is listed on the Saudi market (Tadawul), and has a market value of $ 13 billion as at the end of 2018 .
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