Bahri meets potential investors for sukuk issue; publishes prospectus

The National Shipping Company of Saudi Arabia (Bahri) said on Sunday that it has started meeting potential investors for its sukuk offering, which is worth up to SAR 3.93 billion ($1.04 billion).

The company has also issued a preliminary prospectus for the process, adding that it will determine the size of the offering at a later stage.

Participation is limited to institutional investors with requests of at least SAR 1 million, the company added. Retail investors, however, can purchase sukuk later through the Saudi Stock Exchange.

Funds raised will be allocated to repay a bridge loan and to finance the company’s activities, according to the prospectus.

Saudi Arabia has started to see sukuk offerings pick up in recent months. The Saudi British Bank (SABB) recently issued SAR 1.5 billion in sukuk. Since then, the bank’s stocks have picked up.

Meanwhile, Saudi Binladin Group has reportedly launched a marketing campaign to issue sukuk that could help the construction giant generate up to SAR 1 billion. Najran Cement also plans to issue Riyal-denominated sukuk.

Argaam reported last week on the market regulator’s approval for Bahri’s sukuk plan.