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Banks picked for Almarai's $453m sukuk

DUBAI: Saudi Arabian dairy producer Almarai has mandated four banks to arrange the sale of a 1.7 billion riyals ($453.3 million) Islamic hybrid bond, or sukuk, the company said yesterday.

The Gulf's largest dairy firm has mandated the investment banking arm of Banque Saudi Fransi, BNP Paribas, HSBC's Saudi Arabian unit and Standard Chartered to hold investor meetings during the next two weeks, it said in a statement.

The issue will have a perpetual maturity, meaning that the company can count the proceeds towards its equity position.

It is Almarai's first such issue and one of the first-ever hybrid bonds from a Saudi corporate.

The offering, part of a 15.7bn riyal five-year capital funding programme, will be denominated in Saudi riyals and sold to sophisticated investors residing in Saudi Arabia.



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