Almarai hires advisor to refinance SAR 1.7 bln sukuk in Q3, says CFO

Saudi Arabia’s Almarai has mandated an international adviser to refinance its SAR 1.7 billion worth of sukuk by Q3 2018, Paul Gay, the company’s chief financial officer, told Reuters on Wednesday, without more details about the adviser.

Its current five-year riyal-denominated issue matures in September. The dairy producer is considering five, seven and ten years, and plans to keep the same size of the issue.

Almarai is still studying local and foreign currency denominations. In case of international offering, it would be Almarai’s first dollar-denominated debt sale, Gay added during the Euromoney Conference held in Riyadh.

In its 2017 annual board report, Almarai said it was considering pursuing international financing options for the first time.

International debt would allow the company to access a wider pool of funding options, broaden its investor base, enhance financing costs and and obtain a longer tenor, the report said.