The program was set up for Almarai Company for an amount up to the size of its paid up capital. HSBC also assisted Almarai in the debut issuance under this newly established program, in an amount of SR1 billion ($267 million), with further issuance expected in the future.
A sukuk program effectively allows a company to raise money by launching sukuk into the market quickly and efficiently, and is ideal for issuers intending to access the market frequently and flexibly.
HSBC held sole roles across the program and issuance. It acted as lead manager and bookrunner, program arranger, Shariah coordinator, sukuk holders’ agent and payment administrator.
Fahad Alsaif, head of debt capital markets, HSBC Saudi Arabia, said: “We are proud to have helped Almarai with putting this important funding platform in place, and in the extremely successful debut issuance. This innovative program puts Almarai in line with its global peers and supports its ongoing financing requirements, freeing up bank capacity and securing long term funding in significant size. HSBC’s advice on optimal structure and distribution strategy contributed to Almarai’s debut sukuk witnessing massive demand from the full spectrum of investors, and setting up a very competitive benchmark for future issues. The order book, with a 4.7 times oversubscription, demonstrated the confidence investors have in Almarai as well as trust in the lead manager, HSBC.”
