|20 November, 2019

Arabian Centres completes a refinancing of $1.9bln

The fixed-rate, US dollar-denominated Sukuk, with a tenor of 5 years, carries a coupon rate of 5.375%

Arabian Centres completes a refinancing of $1.9bln

Riyadh: ( AETOSWire)- Arabian Centres Company (“ACC” or “the company”), the leading owner, developer and operator of lifestyle shopping centres in Saudi Arabia, announced today the completion of the offering and pricing of its USD 500 million Sukuk issuance, part of a successful USD 1.9 billion refinancing package comprising both the Sukuk and new bank debt, with settlement of the Sukuk to take place on 26 November 2019.

The fixed-rate, US dollar-denominated Sukuk, with a tenor of 5 years, carries a coupon rate of 5.375%. The issue was 4 times oversubscribed, with Non GCC international investors accounting for 84% of the total transaction allocation and is accompanied by an inaugural Issuer Rating of BB+ from Fitch Rating Agency and Ba1 from Moody’s. The strength and depth of the book demonstrated global investors’ strong appetite for Saudi exposure and Arabian Centres lifestyle offering.  This transaction represents a milestone capital raise for the private sector in Saudi Arabia giving Arabian Centres access to global debt capital markets, and more favorable credit terms, which optimizes the capital structure commensurate with its strong financial position. For international investors, it represented an attractive option to gain exposure to the Saudi consumer and retail real estate sectors at time of dynamic shifts in consumer preferences.

“Having executed a successful initial public offering of our stock and familiarized the broader market with our unique value proposition, we are very pleased to further diversify our funding mix by tapping into the debt capital markets,” said Olivier Nougarou, CEO at ACC. “As we expand our portfolio of prime leisure hubs in the Kingdom’s most important population centres, this transaction will provide ACC with optimum cash resources and liquidity to pursue our medium-term expansion plans and develop the world class retail product that the sophisticated Saudi consumer now demands.”

As part of its holistic capital optimization strategy, the company has also signed new Ijara and Murabaha term facilities together with a revolving Murabaha facility, which, in combination with the Sukuk proceeds, will refinance ACC’s existing bank facilities, extending the company’s debt maturity profile, increasing flexibility to invest in the business and reducing secured debt as a proportion of the company’s overall borrowing.

Specifics of the transaction include:

  • i) a senior unsecured Shari'ah compliant Sukuk offering of SAR 1.9 billion (USD 500 million); and
  • ii) senior secured Ijara and Murabaha duel currency term facilities of SAR 4.5 billion (USD 1.2 billion) and a senior secured dual currency revolving Murabaha facility of SAR 0.75 billion (USD 200 million).

“We believe that the surest way to ensure sustainable growth and drive footfall in our properties is to deepen and broaden the Company’s market reach by investing further in the lifestyle experiences offered at our properties — and by providing a diverse range of differentiated shopping and entertainment experiences,” Nougarou added. “With six projects expected to provide more than half a million square meters of additional GLA by 2024 and new entertainment destinations planned across the Kingdom in ACC’s near-term pipeline, we are highly confident in the ability of ACC’s business model to continue delivering superior returns. To this end, an optimal capital structure will place the Company in a prime position to benefit from favorable long-term macro fundamentals and the Kingdom’s growing commitment to the development of leisure, entertainment, and culture.”

Joint Global Coordinators for the Sukuk: Goldman Sachs International and HSBC Bank plc.

Joint Lead Managers and Joint Bookrunners for the Sukuk: Goldman Sachs International, HSBC Bank plc, Credit Suisse Securities (Europe) Limited, Emirates NBD Capital Limited, Mashreqbank psc,  Samba Capital and Investment Management Company and Warba Bank K.S.C.P.

Legal Advisors:

White & Case LLP and The Law Firm of AlSalloum and AlToaimi in association with White & Case LLP acted for the Issuer

Clifford Chance LLP and Abuhimed Al-Sheikh Al-Hagbani Law Firm acted for the Banks

Financial Advisors:

Houlihan Lokey (MEA Financial Advisory) Ltd. and Swicorp were Financial Advisers to ACC

About Arabian Centres Company

Arabian Centres is the leading owner, operator and developer of contemporary lifestyle centres in Saudi Arabia. For over a decade, the Company has provided customers with a complete range of high-quality lifestyle centres up to international standards, located in the most attractive areas of the country to satisfy all shopping needs and market requirements. As of 30 September 2019, Arabian Centres operates a portfolio of 21 assets strategically located in 10 major Saudi cities. The Company’s developments include several iconic lifestyle centres, such as Mall of Arabia Jeddah, Mall of Dhahran, and Nakheel Mall Riyadh – which was recognized at the Arab Luxury World Forum in 2017 as being consumers' favourite shopping mall in Riyadh. The Company’s lifestyle centres have more than 4,100 stores and hosted 109 million visitors in FY2019. For more information about Arabian Centres Company, please visit www.arabiancentres.com 

Forward-Looking Statements

The information, statements and opinions contained in this Presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Information in this Presentation relating to the price at which investments have been bought or sold in the past, or the yield on such investments, cannot be relied upon as a guide to the future performance of such investments.

This Presentation contains forward-looking statements. Such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause actual results, performance or achievements of Arabian Centres Company (the "Company") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future.

None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the Presentation. These forward-looking statements speak only as of the date they are made and, subject to compliance with applicable law and regulation, the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the Presentation to reflect actual results, changes in assumptions or changes in factors affecting those statements.

The information and opinions contained in this Presentation are provided as of the date of the Presentation, are based on general information gathered at such date and are subject to changes without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Subject to compliance with applicable law and regulation, neither the Company, nor any of its respective agents, employees or advisers intends or has any duty or obligation to provide the recipient with access to any additional information, to amend, update or revise this Presentation or any information contained in the Presentation.

Certain financial information contained in this presentation has been extracted from the Company's unaudited management accounts and financial statements. The areas in which management accounts might differ from International Financial Reporting Standards and/or U.S. generally accepted accounting principles could be significant and you should consult your own professional advisors and/or conduct your own due diligence for complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this Presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.

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The information contained in this announcement does not constitute an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. No securities have been, or will be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or with any securities regulatory authority of any state or other jurisdiction in the United States. No securities may be offered or sold, directly or indirectly, into the United States absent registration or an exemption from registration under the U.S. Securities Act.

This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

FCA/ICMA Stabilisation

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*Source: AETOSWire

Contacts:

Investor Relations Department
Email: ir@arabiancentres.com 
Tel: +966-11-825-2080

© Press Release 2019

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