SAVOLA successfully completes the issuance of SAR 1.5bn sukuk:

Following the Savola Group announcement published on the Saudi Stock Exchange Tadawul on 15 January 2013 in relation to the latest developments on the Sukuk Program and the other previous announcements made on Tadawul on the same matter, the Savola Group would like to announce that, on Tuesday 22 January 2013, it has successfully completed the offering and issuance of the first tranche of the Sukuk with a total value of SAR 1.5 Billion.

This issuance is part of the SAR 5 Billion Sukuk program which was approved by the General Shareholders Assembly and the Board of Directors late last year. The Sukuk have a tenor of 7 years, and have been offered at nominal value with an expected variable return to the Sukukholders of 6 months SIBOR + 110bps.
In this regard, Dr. Abdulraouf Mannaa, the Group Managing Director, indicated that the company has offered the Sukuk by way of a private placement to a number of sophisticated investors including government entities, banks, insurance companies and mutual funds. He added that the total subscription orders for the Sukuk amounted to approximately SAR 4 Billion i.e. exceeded 260% of the issuance size.