Othaim Malls markets SAR 1 bln debut sukuk: report

Al Othaim Real Estate and Investment Co. (Othaim Malls), which owns five malls in Saudi Arabia, is marketing a five-year debut sukuk issuance to raise SAR 1 billion to fund the firm’s expansion plans, Reuters reported, citing unnamed sources close to the matter.

Othaim Malls was said to have launched the process last week, with pricing set between 165 basis points and 175 basis points over the six-month Saudi interbank offered rate. Investors will have until August 20 to apply and participate. 

The retail firm is expected to use the proceeds to building five malls and 16 entertainment centers, over the next few years, according to an unnamed company source.

In June, Othaim Malls said it would complete the transaction after the summer, following delays. 

The issuance is being arranged by the investment banking arms of Banque Saudi Fransi, Gulf International Bank and National Commercial Bank (NCB), Reuters added. 

Othaim Malls is a subsidiary of Al Othaim Holding Co., a Saudi fwhich also owns Abdullah Al Othaim Markets Co.