Najran Cement repurchases, cancels SAR 45 mln sukuk

12/12/2019 Argaam

 

Najran Cement Company on Dec. 12 repurchased and canceled 45 sukuk worth SAR 45 million, representing 11.25% of the total issuance value, the company said in a bourse statement.

 

The buyback was implemented at the fair value of sukuk, and was financed from the company’s internal resources.

 

On June 14, 2015, Najran issued local Sharia-compliant, riyal-denominated bonds in worth SAR 400 million, which was offered in a private placement at nominal value, maturing in June 2020.

 

Due to the buyback, these sukuk will be canceled based on the original sukuk terms. Accordingly, the total value of the private placement will be SAR 355 million.

 

The move is expected to reduce costs going forward, as a result of a decrease in the issuance value. The financial impact might change because it is linked to the value of the three month SAIBOR.

 

No related parties are involved in the transaction, the statement added.

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