Monday 08, October 2018 by Kudakwashe

Saudi's Almarai plans to sell Sukuk by year-end


Banks have yet to be appointed, the new Sukuk will be will used to refinance existing debt.

Saudi Arabia’s Almarai is expecting to issue a new Islamic bond before the end of 2018 as part of an ongoing debt refinancing strategy.

Paul Gay, Almarai’s CFO, said that the Arabian Gulf’s biggest dairy firm is working on a process to refinance its existing debt, and considering options for a new Sukuk which it plans to issue before the end of the year.

The company paid back its previous capital Sukuk of SAR 1.7 billion in September and has around SAR 12 billion debt on its balance sheet.

Almarai posted a 4.9 per cent annual drop in net profit in Q3 2018, on the higher cost of sales and a general contraction in the market. Net profit attributable to shareholders fell to SAR 634.5 million ($169.3 million), reported local daily, The National.

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