Bloomberg/Dubai


Foodmaker Almarai Co has mandated HSBC Saudi Arabia Ltd and Samba Capital for the sale of Islamic bonds two years after it last tapped the market.
The Riyadh-based company plans to raise 2bn riyals ($533mn) in a private offering to investors based in Saudi Arabia after a series of meetings this week, it said in a statement to the kingdom’s bourse. The funds raised will help finance a 21bn-riyal investment programme from 2016 to 2020, it said.
The sukuk offering may be the kingdom’s first since the nation tapped the market after an eight year hiatus, according to data compiled by Bloomberg.
Almarai last sold Islamic bonds in September 2013 when it raised 1.7bn riyals in perpetual notes.
The company, which operates a joint venture with PepsiCo Inc, has a capital investment plan to expand its capacity in farming, manufacturing, distribution and logistics, it said in May. Its profit rose 22% in the second quarter to 530mn riyals.
Almarai’s stock has gained 23% this year to 94.73 riyals on Monday, compared with a 1.3% increase in the benchmark Tadawul All Share Index.