Saudi Fransi Capital announces the closing of the SR1 billion five-year sukuk offering on behalf of Abdullah Al-Othaim Real Estate Investment and Development Company (OREIDCO). The sukuk has been issued through OREIDCO Sukuk Ltd. by way of a private placement in Saudi Arabia.

OREIDCO Sukuk has attracted strong interest from the community of investors in the Kingdom, with demand originating from government-owned funds, banks, asset managers, corporates and insurance companies.

The sukuk, priced at 6-month SAIBOR + 1.7 percent, has helped OREIDCO achieve its objective of diversifying its sources of financing and in extending the liability profile. OREIDCO plans to use the sukuk proceeds for meeting its requirements for capital investment and for general corporate purposes.

GIB Capital, NCB Capital and Saudi Fransi Capital acted as joint lead managers and joint book runners on the transaction.

OREIDCO, via its subsidiaries, is engaged in the development and operation of retail shopping malls in the Kingdom as well as providing entertainment and leisure amenities in Saudi Arabia, the UAE, Egypt and other neighboring markets. It also owns and operates food and beverage outlets in some of its retail shopping malls.