Savola to launch first issuance of sukuk program tomorrow

Savola Group, Saudi Arabia's largest food products company, will start offering from tomorrow (June 19, 2019) the first issuance of its riyal-denominated sukuk program at a par value of SAR 1 million in a private placement, the company said in a bourse statement on Tuesday.

The offering will last until Aug. 31, 2019, but could be completed earlier based on market conditions.

The exact value and final terms of the first issuance, the number and value of the previous sukuk that could be exchanged will be determined subject to the market conditions and Savola's needs.

The sukuk will be offered to sophisticated investors with the minimum subscription limit set at SAR 1 million.

The return of the seven-year sukuk will be determined on SAIBOR plus a Profit Spread.

Savola has mandated HSBC Saudi Arabia Ltd. to act as a lead manager, the statement added.