IslamicFinance.de

Saudi Arabia’s Jabal Omar Development Company has hired two banks to manage a sukuk sale which could exceed 4 billion riyals ($1.07 billion). Bank Albilad and GIB Capital were hired to arrange the issuance, which is planned for the first quarter of 2018. The property developer's sukuk would be among just a few corporate debt sales expected over the next few months, as the Saudi market is still largely dominated by government bonds. The government has issued a total of 47 billion riyals through monthly sukuk sales since July, and is likely to continue. Jabal Omar’s flagship Mecca development project includes residential units, hotels and commercial malls. The company has raised a number of large bank loans over the past few years, and the sukuk proceeds would be used to refinance its existing bank debt.

The CMA Board has issued its resolution approving Bank Albilad’s request to increase its capital from SAR 5,000,000,000 to SAR 6,000,000,000 through issuing one bonus share for every 5 existing shares owned by the shareholders. Such increase will be paid by transferring an amount of SAR 468,000,000 from the “Retained Earnings” account and SAR 532,000,000 from the “Statutory Reserve” account to the Bank’s capital. Consequently, the Bank’s outstanding shares are increased from 500,000,000 to 600,000,000. The bonus shares eligibility is limited to the shareholders who are registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly.

Saudi Arabia's Bank Albilad plans to issue 1 to 2 billion riyals ($267-533 million) of sukuk by the end of the second quarter of 2016 to finance expansion, chief executive Khaled al-Jasser said. The bank plans to open 25 new branches and hire more employees, which Jasser said would likely increase costs this year by 15 to 17 percent. The bank will also move toward a strategy of owning rather than renting its branches, he said. Given weak market conditions, Jasser said the bank would prefer not to distribute dividends at the moment.

The CMA Board has issued its resolution approving Bank Albilad’s request to increase its capital from SAR (3,000,000,000) to SAR (4,000,000,000) through issuance of bonus shares. One bonus share will be issued for every (3) existing shares owned by the shareholders who are registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly. Such increase will be paid by transferring an amount of SAR (1,000,000,000) from retained earnings account to the Company's capital. Consequently, increasing the Company's outstanding shares from (300,000,000) shares to (400,000,000) shares, by an increase of (100,000,000) shares.