Red Sea plans issuing SAR-denominated Murabaha sukuk

Logo of Red Sea International Co.

Red Sea International Co.’s board of directors approved on May 12 the issuance of SAR-denominated sukuk under its Murabaha Sukuk Program, with a total value of SAR 100 million. The issuance is expected to take place through a special purpose vehicle (SPV).

For more news on listed companies

In a statement to Tadawul, the company noted that it appointed Tarmeez Capital as the sole lead arranger for the purpose of establishing, issuing, and offering the sukuk.

The issuance will take place as a public offering of SAR-denominated sukuk on the electronic platform run by Tarmeez Capital, which holds a license from the Capital Market Authority (CMA) to run a platform for debt instrument sale and investment.

Red Sea Co. pointed out that the offering’s objective is to promote the working capital and capital expansion plans in support of its operational activities, as well as for expansion and investment in its real estate assets. The decision aligns with the results of a study the company conducted to back up this financing request.

The offering is subject to the approval of the relevant regulatory authorities and will be conducted in compliance with applicable laws and regulations, the statement added.