Tasnee plans to issue SAR 2 bln sukuk, says CEO

​National Industrialization Co. (Tasnee) is planning a new sukuk worth SAR 2 billion that will mature H1 2019, chief executive Mutlaq Al-Morished told Argaam in an exclusive interview on Tuesday. 

The company will either pay interest to sukuk holders or reoffer Islamic bonds to the same holders or any other potential investors. It will offer three, five and ten-year sukuk, according to Tasnee chief financial officer Fawaz Al-Fawaz.

Reflecting on the company’s performance in Q1 2018, Al-Morished mentioned that earnings were lifted by higher prices of end products, despite a rise in propane costs.

"Tasnee's Q1 is the highest quarterly figure reocrded in over three years," Al-Morished said.

Meanwhile, he mentioned that the company— which manufactures metals and diversified products— was not impacted by the latest trade conflict between the United States and China. 

The company also has sufficient liquidity, thanks to its restructuring and deleveraging efforts, he added.

As for the company’s project developments, most production lines in Hail-based manufacturing plants have commenced operations. All lines will be fully operational in H2 2018. Yanbu's titanium sponge plant will begin production next July.

Trial operations at the first furnace in Jazan's ilmenite smelter project, which produces titanium slag, are expected to start in the second half of this year, Al-Morished said, adding that Tasnee contracted Tronox to provide technical assistance in training and operation.  

Tasnee posted a net profit of SAR 361.4 million for Q1 2018, more than triple year-on-year.