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20 JUL 2022
New funding raised shall be used to refinance the corporate’s current SAR 3.9 billion Sukuk maturing in July 2022
Riyadh, Saudi Arabia – 6 July 2022: Bahri, a world chief in logistics and transportation, has accomplished the issuance of Saudi riyal-denominated seven-year senior unsecured Sukuk price SAR 3.9 billion. The proceeds from the issuance shall be used to refinance the corporate’s current SAR 3.9 billion Sukuk maturing in July 2022.
The seven-year senior unsecured Sukuk was issued by means of a Non-public Placement supply at a aggressive floating revenue charge of 120 foundation factors above the six-month Saudi Arabian Interbank Supplied Price (SAIBOR). Open to Saudi institutional and certified buyers, the supply was oversubscribed by 1.95 instances.
Eng. Ahmed Ali Alsubaey, CEO of Bahri, mentioned: “This strategic transaction represents a key milestone for Bahri and highlights the arrogance buyers have positioned within the firm, which is tremendously valued by our Board of Administrators and administration workforce at massive. It’s a proud second for Bahri because it additionally enhances one of many aims of the Monetary Sector Growth Program underneath Saudi Imaginative and prescient 2030 to develop and deepen the capital markets in Saudi Arabia. It additionally demonstrates our belief within the native debt markets by elevating a major quantity of funds from numerous native buyers.”
The issuance of Bahri’s new Sukuk has achieved the aims of the corporate’s measurement, diversification, and price of funding. Important investor diversification was achieved with sizable participation from key authorities Funds, asset managers, pension funds, and Islamic & standard banks, with a ultimate order guide closing at a price nearly doubling the anticipated one.
Eng. Fayez Al-Asmari, CFO of Bahri, added: “Regardless of the antagonistic market setting, Bahri’s Sukuk achieved nearly two instances oversubscription and was in a position to diversify away from financial institution buyers, and because of this, strengthened the standard of the order guide by allocating a major quantity of the funds raised to asset managers, pension funds, and company buyers. This wonderful end result not solely exceeds expectations, but in addition sends a optimistic word to buyers and collectors that Bahri’s credit score historical past is valued and endorsed by the investor neighborhood. We want to thank HSBC Saudi Arabia, SNB Capital, and Al Rajhi Capital, whose position was instrumental in serving to us obtain our key aims and guarantee well timed execution of the transaction.”
The joint lead managers of the transaction have been SNB Capital, Al Rajhi Capital, and HSBC Saudi Arabia. The lead coordinator was HSBC Saudi Arabia, which additionally acted as Sukuk holders’ and cost agent.
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