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Almarai plans to issue second Sukuk in few months

11 Nov 2012 09:23 GMT   التعليقات ()       إضافة تعليق       طباعة       إرسال لصديق

Almarai Co. in Dubai, UAE

Dubai: Gulf investors interested in the shariah-compliant products are now going to have another investment opportunity in Hilal (permissible) mode of investment as the Saudi Arabian company, Almarai, is planning to issue its second sukuk in open market.

According to the statement issued by Almarai, Saudi Arabian dairy and food producer, Almarai Co., plans to issue the second tranche of a riyal-denominated Islamic bond program in the coming months to private investors.

The Gulf’s largest dairy firm raised 1 billion riyals ($266.6 million) through the first tranche in March in a deal which was 4.7 times oversubscribed.

The company said in the statement, “This second tranche of sukuk will be a private offering to sophisticated investors resident in the Kingdom of Saudi Arabia.”

Proceeds from the sukuk are seen helping finance Almarai's $4.2 billion investment program which is aimed to expand its business between 2013 to 2017.

Almarai has been keen to expand its footprint outside its core presence in the Gulf region. In December it acquired Fondomonte S.A., which owns and operates firms in Argentina, to secure feed for its dairy herd and poultry business.

The company’s third quarter earnings rose 4.7 percent but fell short of analysts’ prediction as higher commodity prices and expansion costs ate into earnings, Almarai said in October.

Shares in Almarai are up more than 20 percent this year.

Source: Al Arabiya Digital

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