SAL Saudi Logistics Services Co is set to issue Saudi Riyal (SAR)-denominated sukuk through a private placement, ahead of plans to expand its logistics division capacity by 2030.

The Saudi-listed firm, which specialises in cargo handling, logistics solutions and supply chain management, confirmed on Monday its intention to issue the financial instrument, which will target domestic and international investors.

J.P. Morgan Saudi Arabia and SNB Capital have been appointed to lead the offering and manage the book building process.

The company has yet to fix the amount of the offering, as well as the final terms, which will be determined based on market conditions and after a series of talks with potential investors.

Proceeds of the offering will be used for general corporate purposes, with a primary focus on funding future expansion activities and strategic growth.

(Writing by Cleofe Maceda; editing by Seban Scaria seban.scaria@lseg.com)