ISLAMIC BONDS
Saudi firm to debut US-dollar sukuk
According to one of the sources, JPMorgan and Standard Chartered have also been appointed to arrange the sukuk
Dubai — The Gulf’s largest dairy company Almarai has hired banks including HSBC and First Abu Dhabi Bank to arrange a sale of US-dollar sukuk, or Islamic bonds, sources familiar with the matter say. The sale would mark Almarai’s debut in the international debt markets, as the Saudi Arabian company has so far issued bonds in riyal. The issue is expected to be of benchmark size, which generally means in excess of $500m, the sources said. Almarai’s investor relations office declined to comment on the plan, saying it does not respond to rumours. According to one of the sources, JPMorgan and Standard Chartered have also been appointed to arrange the sukuk. Standard Chartered, JPMorgan and HSBC all declined to comment on the matter, as did First Abu Dhabi Bank. Almarai’s chief financial officer told Reuters in May that the company planned to refinance 1.7-billion riyals ($453m) in sukuk by the third quarter of 2018. It also said it had hired an international adviser to complete the proces...
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