Sign in
Saudi German Health wrapped up the sale of a SAR 1 bn sukuk yesterday, it said in a regulatory filing, marking the completion of its first issuance under a SAR 1.5 bn sukuk program. The final terms of the sukuk will be released on Al Rajhi Capital’s webpage on Wednesday, 6 March.
It’s all about keeping borrowing costs under control: “This [sukuk program] will help improve cashflow and boost profitability,” President and Deputy Chairman Makarem Batterjee told CNBC Arabia in an interview last month, estimating the healthcare provider’s total debt at SAR 3 bn.
Background: The five-year SAR-denominated sukuk carries a 7.2% fixed annual yield which will be paid out to sukuk holders on a quarterly basis.
Proceeds will be used to finance the company’s general corporate operations, after having entered into mudaraba and murabaha transactions in compliance with Shariah law, according to the prospectus (pdf).
ADVISORS-Al Rajhi Capital quarterbacked the transaction as the sole lead manager, financial advisor and arranger with Linklaters acting as legal advisor.
