Najran Cement to discuss Sukuk-related provisions on Nov. 4
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Najran Cement Co.’s sukuk holders on Nov. 4 will discuss waiving any right that may result from provisions pertaining to the SAR 400 million sukuk issue, maturing in June 2020, due to non-compliance with the financial terms as per financial statements ending Dec. 31, 2017.
Najran Cement had pledged that net consolidated debt/consolidated profit ratio before deducting interest, zakat, amortization and depreciation will not exceed 3.5x.
Sukuk holders will also discuss cancelling a term stipulating that interest coverage ratio should not be less than 4x, and the term stipulating that net consolidated debt/consolidated profit ratio before deducting interest, zakat, amortization and depreciation shall not exceed 3.5x.
In 2015, Najran Cement raised SAR 400 million through an Islamic bond of five-year duration. The sukuk was privately placed with investors and was priced at 1.4 percent over the three-month Saudi interbank offered rate (Saibor). In May 2015, Najran said it would issue a SAR-denominated sukuk which will be used to refinance debt and for general purposes, according to earlier news reports