Saudi Arabia’s shopping mall operator and developer Arabian Centres Company (Cenomi Centers) issued at $500 million a five-year (non-call for two years) benchmark sukuk with an 8.875 percent coupon and a re-offer price of 99.014.
However, the initial price speculations of the Reg S senior unsecured Eurobond were around the 9.375 percent range. The orderbook was highest at over $990 million, and then it came to rest at $880 million with interest of $120 million from JLM.
Ratings agency, Fitch, believes that the bond has the potential to “slight outperformance in the secondary market post issue.”
It is projected that the fixed rate Wakala Murabaha structure would have a rating of BB by Fitch and B+ by S&P, respectively, similar to the own rating of the issuer.
The company listed on the Tadawul has appointed the Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, Goldman Sachs International (B&D), and Mashreq as joint global coordinators and bookrunners, and Arqaam Capital, Dubai Islamic Bank, First Abu Dhabi Bank, JP Morgan Securities, RAKBank, and Sharjah Islamic Bank as joint lead managers and bookrunners.
Gradually, it will be listed on The International Stock Exchange (TISE). Emirates NBD Capital is the only Islamic structuring bank on the offering.
Proceeds will refinance the current bond of the company of $875 million, which will mature in October 2026, as a portion of a concurrent tender offer, and will pay back the bank debt.
