Saudi's Almarai to Issue Private Sukuk in Coming Months

Monday, Nov 05, 2012

RIYADH (Zawya Dow Jones)--Saudi Arabia-based Almarai Co. (2280.SA), the Gulf's largest dairy producer, said Monday it plans to issue the second tranche of an Islamic bond, or sukuk, program in the coming months to help finance its investment program.

The issuance comes as part of Almarai's 2013-2017 Capital Investment Program of 15.7 billion Saudi riyal ($4.2 billion), and will be subject to market conditions, the company said in a statement posted on the Saudi bourse website.

The latest tranche will be a private offering to residents in the kingdom, the dairy producer said in the statement.

Almarai aims to raise a total of SAR2.3 billion through its sukuk program, the first tranche of which was successfully completed in March 2012 for an amount of SAR1.0 billion.

Over the past few years, Almarai has made a number of acquisitions, including Egyptian subsidiary the International Co. for Agroindustrial Projects, better known as Beyti, and Jordan's Taiba Investment and Advanced Food Co.

Almarai shares closed trading Sunday down 1% at SAR68.50.

Write to Iman Dawoud at iman.dawoud@dowjones.com

(END) Dow Jones Newswires

05-11-12 0658GMT