Savola Group, the largest food products company in Saudi Arabia, plans to repurchase sukuk worth 859 million Saudi riyals ($228.7 million).

The buyback is from the SAR 1 billion sukuk issued in 2019 and matures in 2026, with the redemption ratio at 85.9%, the company said in a statement to the Saudi stock exchange.
 
The move will enhance and improve the company’s capital structure, reduce financial obligations and lower financing costs.

Savola intends to cancel the sukuk as per the relevant terms and conditions following the buyback.
 
The redemption value will be deposited into the investors’ accounts by HSBC Saudi Arabia on December 10.
  
The financial impact of this transaction will be reflected in the 2024 financial results, the statement said.

(Editing by Seban Scaria seban.scaria@lseg.com )