Albilad Capital participates in arranging sukuk issuances worth over SAR 28 bln in H1 2021

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Albilad Capital, the investment arm of Bank Albilad, announced its success in participating in arranging sukuk issuances for major Saudi companies with a value exceeding SAR 28 billion during the first half of 2021, in a new achievement added to the company's recent achievements. Among the most prominent and successful issuance deals that Albilad Capital participated in arranging during the first half of this year is the issuance of Saudi Aramco, Bank Albilad, Rawabi Holding Company and Arabian Centers Company.

Mr. Zaid Almufarih, CEO of Albilad Capital, commented: “Participation in these issuances reflects the continued efforts of Albilad Capital in contributing to the development of the sukuk market in the Kingdom and striving towards enabling companies to access the capital markets by structuring innovative financial products and solutions commensurate with its financing requirements on one hand and achieve the investment objectives of investors on the other hand.”

Mr. Zaid Almufarih pointed out that the popularity of these issuances confirms the confidence of the investment community in the financial products and services offered by the company, and reflects the company's capabilities to participate in such issuances to develop the financial market and provide liquidity and alternative financing channels for companies through the local debt instrument market.

The CEO of Albilad Capital said: "We continue to support the use of sukuk and debt market as a primary source of liquidity. The development of the sukuk market within the Kingdom is in line with the Kingdom's Vision 2030, which aims to encourage the growth of the local debt instrument market and increase the diversity of available financing options."

Mr. Almufarih added that Albilad Capital has been chosen in the issuance process due to its strong reputation in distributing sukuk to a base of investors from various categories.

Among the most important deals that were arranged, Albilad Capital participated in the issuance of the Arabian Centers Company sukuk denominated in US dollars at a value of $650 million (equivalent to 2.4 billion Saudi riyals). Along with regional and international companies, Albilad Capital was appointed as the only local company to be a joint lead manager for the US dollar sukuk issuance.

Albilad Capital also participated in arranging the sukuk issuance process of Rawabi Holding Company in its fourth and fifth issues with a total value of more than one billion Saudi riyals, as it was appointed as a joint lead manager with leading local companies for the issuance of sukuks under a sukuk program worth 2.5 billion Saudi riyals, in addition to its contribution to attract new investors in the fourth and fifth editions.

The deals included the issuance of sukuk to Bank Albilad in Saudi riyals in the category of the second tranche, with a value of 3 billion Saudi riyals, as Albilad Capital was appointed as the regulator and exclusive agent for the issuance of the sukuk.

In addition, Albilad Capital participated among the Passive Bookrunners to issue US dollar-denominated sukuk to Saudi Aramco with a value of $6 billion (equivalent to 22.5 billion Saudi riyals), within a group of local and international managers of the deal.