Cenomi Centers plans new sukuk; offers to buy existing $875M issue

Cenomi Centers launches a $875 mln tender offer for outstanding sukuk and announces plans for USD-denominated Shariah-compliant sukuk

Arabian Centres Co. (Cenomi Centers) announced its intention to issue dollar-denominated Shariah-compliant sukuk.

In addition, the company stated on Tadawul that it launched a comprehensive purchase offer along with a consent request for its outstanding sukuk worth $875 million, maturing in 2026.

The purchase offer will expire on Dec. 1 at 4:00 pm London time, while the deadline for voting on the consent request will be on Dec. 8 at 4:00 pm London time.

Cenomi Centers appointed Abu Dhabi Commercial Bank (ADCB), Citigroup, Emirates NBD Capital, Goldman Sachs International, and Mashreq Bank (Islamic banking division) as global coordinators.

It also appointed ADCB, Arqaam Capital, Citigroup, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank (FAB), Goldman Sachs International, J.P. Morgan Securities, Mashreq Bank (Islamic banking division), Sharjah Islamic Bank, and RAKBANK as joint lead managers for the transaction.

Additionally, as part of the preparations for the potential sukuk issuance, the company will hold a series of meetings with prospective investors.

The planned sukuk will be dollar-denominated instruments, compliant with Shariah principles, to be issued by Arabian Centers Sukuk IV Limited.

The tender offer and consent request relate to the company’s existing dollar-denominated, Shariah-compliant sukuk issued by Arabian Centers Sukuk II Limited.

Cenomi Centers noted that the number and value of any sukuk to be issued will depend on market conditions and the company’s financial and strategic needs.

It stated that the issuance aims to support general corporate purposes and meet financial and strategic requirements, including refinancing certain existing obligations. It will be subject to regulatory approvals and comply with all applicable rules and regulations.

Cenomi Centers’ board of directors approved on Nov. 13, authorizing the management of the obligations through a cash tender offer, consent request, exchange offer, or any combination thereof concerning the $875 million nominal value sukuk issued by Arabian Centers Sukuk II Limited.