IslamicFinance.de

Saudi Almarai Co picks NCB Capital to arrange local currency sukuk. The dairy group Almarai is going to hold meetings with the Saudi investors over next two weeks.

Almarai Co, dairy and food producer in Saudi Arabia, has planned the issuance of the second tranche of its riyal-denominated sukuk programme in the coming months. The sukuk is directed towards private investors who are residents of the Kingdom. The first tranche, which was issued in March, was able to raise 1 billion riyals ($266.6 million). Thus, the deal was 4.7 times oversubscribed. The sukuk programme aims to help finance the company's $4.2 billion investment programme to expand its business between 2013 to 2017.

Almarai Co, a producer of dairy and food products, announced its intentions of issuing the second tranche of a riyal-denominated sukuk programme. The issuance is to be made in the coming months and is directed towards private investors. The first tranche of the programme brought the company 1 billion riyals ($266.6 million). The investors in the second tranche have to be residents of the Kingdom. The sukuk is to contribute to financing Almarai's $4.2 billion investment programme, the goal of which is the expansion of the company's business between 2013 to 2017.

The following borrowers are anticipated to sell Islamic bonds, which use asset returns to pay investors to acceed with the religion’s ban on interest: MAJID AL FUTTAIM HOLDING LLC, ALBARAKA TURK KATILIM BANKASI AS (ALBRK), ASYA KATILIM BANKASI AS (ASYAB), GOLDMAN SACHS GROUP INC. (GS) , ALMARAI CO, MYDIN MOHAMED HOLDINGS BHD., BARWA BANK, ISLAMIC BANK OF THAILAND, PALESTINE MONETARY AUTHORITY:, INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT CORP., AL BARAKA BANK EGYPT ESC and many others.

It seems that Almarai Co is to going to look for shareholder approval of its plan to launch sukuk at a general assembly meeting on Nov. 19.
Shareholders will be asked to accept the company's bond issue programme, and to certify its board of directors to launch the sukuk, once all regualtory approvals are in place.