Sadara sukuk oversubscribed 2.6 times

Updated 03 April 2013

Sadara sukuk oversubscribed 2.6 times

Sadara Chemical Company (Sadara) announced the successful closing of the sukuk issued through its subsidiary Sadara Basic Services Company (SBSC). The sukuk has received strong investor demand, resulting in 2.6 times oversubscription based on the initial offering size of SR 5.25 billion. In keeping with this demand, Sadara has up-sized the issuance to SR 7.5 billion.
The sukuk have a floating rate and will have a tenor of approximately 16 years. The sukuk investors will receive an expected return of 6 month SAIBOR plus 95 basis points per annum, to be distributed semi-annually.
The net proceeds of the issue of the sukuk will be used to provide finance for, and procure the construction and delivery of, plants forming part of a chemicals complex located in Jubail Industrial City II in the Eastern Province.
SBSC is a joint stock company with commercial registration number 2055018374, established in Saudi Arabia for the purpose of issuing the sukuk on behalf of Sadara. It should be noted that the sukuk issuance was approved by the joint Shariah committee of Alinma Investment Company and AlBilad Investment Company, by the Shariah committee of Riyad Capital and the Shariah adviser of Deutsche Securities Saudi Arabia LLC.
Sadara has appointed AlBilad Investment Company, Alinma Investment Company, Deutsche Securities Saudi Arabia LLC and Riyad Capital as joint lead managers and joint book runners. The legal advisers to the joint lead managers are Milbank, Tweed, Hadley & McCloy LLP, and Zeyad S. Khoshaim Law Firm in association with Allen & Overy LLP. In addition, the legal advisers to SBSC and Sadara are Waleed N. Al-Nuwaiser in association with White & Case LLP, and Hatem Abbas Ghazzawi & Co.
Established in October 2011, Sadara is a limited liability company developed by Saudi Arabian Oil Company and the Dow Chemical Company. Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City II, in the Eastern Province of Saudi Arabia. Once completed, the complex is expected to be one of the world’s largest integrated chemical facilities, and the largest ever built in a single phase. First production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016.The sukuk prospectus was published on March 16.
“This press release is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities,” a statement said.
The Capital Market Authority and the Saudi Stock Exchange (Tadawul) take no responsibility for the contents of this announcement, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this announcement.


France ready to take Trump’s tariff threat to WTO

Updated 08 December 2019

France ready to take Trump’s tariff threat to WTO

  • Macron government will discuss a global digital tax with Washington at the OECD, says finance minister

PARIS: France is ready to go to the World Trade Organization to challenge US President Donald Trump’s threat to put tariffs on French goods in a row over a French tax on internet companies, its finance minister said on Sunday.

“We are ready to take this to an international court, notably the WTO, because the national tax on digital companies touches US companies in the same way as EU or French companies or Chinese. It is not discriminatory,” Finance Minister Bruno Le Maire told France 3 television. Paris has long complained about US digital companies not paying enough tax on revenues earned in France.

In July, the French government decided to apply a 3 percent levy on revenue from digital services earned in France by firms with more than €25 million in French revenue and €750 million ($845 million) worldwide. It is due to kick in retroactively from the start of 2019.

Washington is threatening to retaliate with heavy duties on imports of French cheeses and luxury handbags, but France and the EU say they are ready to retaliate in turn if Trump carries out the threat. Le Maire said France was willing to discuss a global digital tax with the US at the Organization for Economic Cooperation and Development (OECD), but that such a tax could not be optional for internet companies.

“If there is agreement at the OECD, all the better, then we will finally have a global digital tax. If there is no agreement at OECD level, we will restart talks at EU level,” Le Maire said.

He added that new EU Commissioner for Economy Paolo Gentiloni had already proposed to restart such talks.

France pushed ahead with its digital tax after EU member states, under the previous executive European Commission, failed to agree on a levy valid across the bloc after opposition from Ireland, Denmark, Sweden and Finland.

The new European Commission assumed office on Dec. 1.