SAL board OKs launching SAR-denominated sukuk program

Logo of SAL Saudi Logistics Services Co.

SAL Saudi Logistics Services Co.’s board of directors approved today, Oct. 7, establishing a SAR-denominated sukuk issuance program, according to a statement to Tadawul.

The company appointed J.P. Morgan Saudi Arabia Co. and SNB Capital Co. as arrangers to establish the potential program.

Any offer of sukuk under the program will be subject to the approvals of the relevant regulatory authorities and will be made in compliance with applicable laws and regulations.

Moreover, SAL will assess the utilization of the program in relation to its capital expenditure plans to support its business and expansions plans to meet its financial and strategic objectives.

Earlier today, SAL signed the final (sub usufruct) agreement with Sela Co. to lease a land plot in Falcon City, north of Riyadh, with expected investments of SAR 4.2 billion, according to data available with Argaam.

In March, the company’s CEO Omar Hariri said that all financing options for the new logistics zone project in Riyadh are on the table. He added that the company has strong untapped capacity in debt markets and will secure the necessary facilities for the logistics zone project without compromising its current dividend policy.