Saudi mall operator Arabian Centres eyes $500mln sukuk

Arabian Centres operates 21 shopping centres across the kingdom

  
A general view of the Mall of Dhahran, a shopping mall operated by Arabian Centres in Dhahran, Saudi Arabia, May 1, 2019.

A general view of the Mall of Dhahran, a shopping mall operated by Arabian Centres in Dhahran, Saudi Arabia, May 1, 2019.

REUTERS/ Hamad I Mohammed
Arabian Centres Company, a leading owner, developer and operator of lifestyle shopping centres in Saudi Arabia, is planning to sell $500 million worth of Islamic bonds (sukuk), said a report, citing sources familiar with the matter.
 
The sukuk is being seen as the first Saudi corporate international bond issuance this year, stated the report citing sources.
 
Arabian Centres, which operates 21 shopping centres across the kingdom, had in 2019 entered the international sukuk market with a $500 million issuance, after going public earlier that year with a SR2.8 billion ($746.61 million) initial public offering.
 
The planned deal follows a flurry of transactions from mainly governments and banks in the GCC region this year, with borrowers taking advantage of low rates to boost coffers hurt by the Covid-19 pandemic.
 
The proceeds from the planned debt sale - expected to happen before Ramadan - will be used to refinance outstanding debt and to back expansion plans, they added.
 
HSBC is helping the firm to arrange the deal. Goldman Sachs too has been roped in to lead the transaction.

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