Savola plans SAR 5 bln domestic sukuk

The Savola Group is planning a riyal-denominated sukuk program of up to SAR 5.3 billion, the company said in a bourse statement today.

The edible oil producer will issue sukuk either directly or through setting up a special purpose vehicle (SPV) inside or outside the Kingdom.

The SPV will be used to issue and offer senior and/or subordinated sukuk in one or several tranches or through one or a series of issuances.

The first issuance under the program was approved by the board of directors on May 8, 2019, to fulfill the company's financial and strategic needs pending the approval of the competent regulatory authorities.

The value and terms of the first issuance, the number and value of the previous sukuk to be exchanged, the related terms, and the value and terms of any other issuance under the program will be determined later on, as subject to the market conditions.

The first issuance will be offered in exchange for funds, or for all or some of the previous Islamic bonds issued on Jan. 22, 2013.

The company will announce the related developments to its shareholders in due course, the statement added.