DUBAI: Saudi Arabian dairy producer Almarai Co has mandated four banks to arrange the sale of a 1.7 billion riyals or $453.3 million Islamic hybrid bond, or sukuk, the company said on Wednesday.
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 posted on the Saudi bourse.
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 15.7 billion riyal 5-year capital funding program, will be denominated in Saudi riyals and sold to sophisticated investors residing in the Kingdom of Saudi Arabia. (Reuters)
