Issuance helps deepen Saudi capital markets under the Financial Sector Development Program
Bahri, a global leader in logistics and transportation, has completed the issuance of Saudi riyal-denominated seven-year senior unsecured Sukuk worth SAR 3.9bn (US$ 1.04bn).
The proceeds from the issuance will be used to refinance the company’s existing SAR 3.9 billion Sukuk maturing in July 2022.
The seven-year senior unsecured Sukuk were issued by way of a Private Placement offer at a competitive floating profit rate of 120 basis points above the six-month Saudi Arabian Interbank Offered Rate (SAIBOR). Open to Saudi institutional and qualified investors, the offer was oversubscribed by 1.95 times.
“This demonstrates our trust in the local debt markets by raising a significant amount of funds from various local investors,” stated Eng. Ahmed Ali Alsubaey, CEO, Bahri.
“This excellent outcome not only exceeds expectations, but also sends a positive note to investors and creditors that Bahri’s credit history is valued and endorsed by the investor community,” remarked Eng. Fayez Al-Asmari, CFO, Bahri.
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