Savola plans to buy back SAR 60M sukuk

Savola Group headquarters

Savola Group intends to repurchase the remaining sukuk, earlier issued on July 9, 2019, and maturing on July 9, 2026, at a total value of SAR 60 million.

In a statement to Tadawul today, Dec. 24, the company said 100% of the issued sukuk will be redeemed upon completion of the buyback process.

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Savola plans to cancel the repurchased sukuk in accordance with the terms and conditions entailed under the issuance.

The company stated that the financial impact of this transaction will appear in the 2024 annual financial statements.

The early purchase and redemption of the sukuk align with Savola's strategic objectives to enhance its capital structure, reduce financial obligations, and lower financing costs.

The proceeds will be deposited into the sukuk holders’ accounts on Dec. 26, the statement noted.

According to data available with Argaam, Savola recently announced its plan to buy back an additional SAR 81 million worth of sukuk from its SAR 1 billion issuance in 2019, maturing in 2026.

It also recently bought back SAR 859 million worth of sukuk from its SAR 1 billion issuance in 2019 and maturing in July 2026, with a redemption ratio of 85.9% and a total of 859 Sukuk.