Al Hokair EGM agrees terms for SAR 500 mln sukuk

Fawaz Abdulaziz Al Hokair Co.’s sukuk holders have agreed on new terms for the company’s SAR 500 million worth of Islamic bond, maturing in 2019, the company said in a statement to Tadawul on Monday.

At the extraordinary general meeting on Monday, bond holders approved raising the profit margin on the Islamic bond to 3 percent from 1.85 percent for every interim distribution period, starting from June 24, 2017.

A special distribution will made of SAR 7.7 million within three business days from the date of the extraordinary decision.

The Saudi retailer, which franchises brands such as Zara and Marks and Spencer in the kingdom, will have right to recall all sukuk at any interim distribution date, the statement added.

Meanwhile, sukuk holders waived obligations arising from the company’s breach of covenants until September 30, 2017. The decision was approved by an 82 percent majority.