National Building plans to issue SAR 100 mln worth of Murabaha sukuk

Logo of National Building and Marketing Co.

National Building and Marketing Co.’s (NBM) board of directors approved, on Feb 19, to issue Murabaha SAR-denominated sukuk, under the sukuk program.

According to a statement to Tadawul, the issuance value has been determined at SAR 100 million and will be offered in several tranches based on the existing market conditions. The issuance aims to enhance NBM’s working capital and capital expansions.

The sukuk issuance is pending the approval of the Capital Market Authority (CMA), the statement noted.

Afaq Capital approved, on Feb. 19, NBM’s request for appointment as a financial advisor for the sukuk issuance as a limited private placement under the program terms.

The sukuk prospectus will be announced upon its issuance and following obtaining official approvals. The prospectus can be viewed later on the Afaq website.