Cenomi Centers’ EGM approves SAR 3.75B sukuk issue

Logo of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co.’s (Cenomi Centers) extraordinary general meeting (EGM) approved, on March 23, authorizing the company to offer one or more issuances of Shariah-compliant sukuk certificates of up to SAR 3.75 billion or equivalent amount in any other currencies as may be determined by the board of directors in their own discretion from time to time.

In a statement to Tadawul, the company said that the sukuk may be issued on a private placement basis either domestically or internationally, whether as a standalone sukuk issuance transaction, or as an establishment of (together with any periodic updating and supplementing of) a sukuk issuance program, and through a single or multiple issuances.

The instruments could either be issued through a special purpose vehicle incorporated in an offshore jurisdiction or directly by the company, in each case in accordance with the board and the company’s long-term policy to move to more flexible, unsecured financing.

Shareholders also granted the board 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 resolution, take any action and negotiate, approve and enter into any agreement, deed or another document as may be necessary to implement any such offerings.

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

The authorization for SAR 3.75 billion aggregated principal amount of sukuk issuances will include any remaining authorized amounts of sukuk issuances not utilized under the company’s Jan. 9, 2024 EGM authorization, the statement added.

Meanwhile, Cenomi Centers noted that the sukuk proposal follows the completion of sukuk issuances in 2024. Therefore, the combined total aggregate principal amount of sukuk issuances conducted under this authorization and any remaining unutilized amount from Jan. 9, 2024, authorization shall not exceed SAR 3.75 billion.

According to data compiled by Argaam, 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, 2024.