Riyadh: Saudi Arabian dairy producer Almarai has completed the first hybrid bond offer by a corporation in the Gulf, selling a SR1.7bn ($453.2m) Islamic bond (sukuk) yesterday, bankers said.
The issue is a perpetual sukuk, meaning it has no maturity date and in some ways resembles an equity instrument. The issuer can choose to redeem the sukuk after five years.
Since last year two banks in the Gulf have issued hybrid sukuk and one has issued a hybrid conventional bond; Almarai’s issue is the region’s first hybrid from an issuer other than a bank.
Almarai’s deal was priced at 200 basis points over the three-month London Interbank Offered Rate, in line with previously given guidance. If the sukuk is not redeemed, the profit rate steps up by 750 bps, according to a lead banker.
Information on allocations to various investor types and the reoffer price will be released later this week, in accordance with Saudi regulations. The cash reoffer price is likely to be at par, the lead said.
Apple unseats Coca-Cola as
PARIS: Coca-Cola has lost its crown as the world’s best brand, a closely watched survey said yesterday, unseated by the iconic iPhone and iPad maker Apple.
This marks the first time the soft drink missed the top spot on the “best global brand report”, a line-up created in 2000 by marketing consultancy Interbrand, a unit of the Omnicom advertising conglomerate.
“Every so often, a company changes our lives — not just with its products, but with its ethos,” said Jez Frampton, Interbrand’s chief executive.
“This is why, following Coca-Cola’s 13-year run at the top of Best Global Brands, Apple now ranks #1,” he said.
In fact, Coca-Cola dropped two places in 2013, also losing to Google, the search engine, which came in second place.
Apple has always been on the list, beginning at #36 in 2000, but has slowly climbed the ranks.
But Interbrand warned Apple needed to keep a close eye on archrival Samsung (#9), especially on the crucial smartphone market. “To maintain its number one position over the next year, Apple will have to slow rival Samsung’s momentum in the mobile market and never lose sight of what it does best: ‘Think different’,” the consultancy said.
According to Interbrand, the Apple brand is worth $98.31 billion, a 28 percent rise from the previous year with the Google brand weighing in at $93.29bn.