Cenomi Centers shareholders approve SAR 3.75B sukuk issue

Cenomi Centers headquarters

Arabian Centres Co. (Cenomi Centers) shareholders approved the issuance and offering of Shariah-compliant sukuk at an aggregate principal amount of up to SAR 3.75 billion at the extraordinary general meeting (EGM) held on Jan. 9, the company said in a statement to Tadawul.

The sukuk may be issued on a private placement basis either domestically or internationally. It could either be a standalone sukuk issuance transaction or as an establishment of a sukuk issuance program, and through a single or multiple issuances. It could also be through a special purpose vehicle incorporated in an offshore jurisdiction or directly by the company.

The sukuk comes in accordance with the company’s long-term policy to move to more flexible and unsecured financing.

Furthermore, Cenomi Centers’ board was granted the general and unconditional authority to carry out all necessary actions or procedures, either directly or by way of delegation, in respect of any such sukuk offerings, and to adopt any decision, take any action and negotiate, approve and enter into any agreement, deed or another document as may be necessary to implement any such sukuk offerings.

The board will also decide the number, value and pricing of sukuk offered pursuant to any such sukuk offerings, and the timing of any such offerings, based on market conditions and the company’s financial condition, without reverting to the shareholders general assembly, the company said.