| Element List | Explanation |
|---|---|
| Offer Type | International USD denominated Sukuk |
| Introduction | Reference is made to the announcement from Arabian Centers Company (“Company” or “ACC”) published on the Saudi Stock Exchange’s (Tadawul) website on 11 Sha’aban 1442H (corresponding to 24 March 2021G) relating to the commencement of virtual international roadshow meetings with investors in respect of the issuance of USD denominated Shari'ah compliant Sukuk. The Company would like to announce that it has completed the offering of such issuance and the settlement of the sukuk will take place on 25 Sha’aban 1442H (corresponding to 07 April 2021G). |
| Offer Type | International USD denominated Sukuk |
| Value of the offer | USD 650,000,000 |
| Total number of (Bonds/Sukuk) | 3,250 |
| Par Value (Bonds/Sukuk) | USD 200,000 |
| Return (Bonds/Sukuk) | 5.625% |
| Maturity (Bonds/Sukuk) | 5.5 years |
| Terms of Redemption | The Certificates may be subject to early dissolution at the option of the Company upon the occurrence of a tax event. The Certificates may also be subject to early dissolution upon the occurrence of a total loss event, an asset disposition event, a delisting event, dissolution at the option of the Company or a dissolution event. A change of control put option, delisting event put option, and an asset disposition put option and a Company clean-up call option also apply to the Certificates. |
| Additional Information | Application has been made to the International Stock Exchange Authority Limited (the "Authority") for the listing of and permission to deal in the Certificates on the Official List of The International Stock Exchange. Sukuk Certificates may be sold in reliance on Regulation S or Rule 144A under the U.S. Securities Act of 1933, as amended. The Company will continue to complete all the necessary procedures to settle the issuance of the Sukuk and allocate such Sukuk to the investors, where it is worth noting that this subscription was twice oversubscribed by the investors. |
This step comes to support and strengthen the Company's financial position through settling a large portion of its existing loans, and to free-up many of its assets as part of the Company’s strategy to release all its mortgaged assets at lending banks. Also, this step will provide an additional liquidity to support and finance the Company's near and medium-term expansion plan that includes eight projects, which comes in line with the Company's broad strategy, which aims to expand within the lifestyle shopping centers that include various entertainment destinations such as cinemas, luxurious restaurants and cafes, in addition to retail stores.
On another note, the Company is pleased to announce that “Moody’s” has assigned Ba2 credit rating to this Sukuk issuance and upgraded the inaugural Sukuk issuance due on 2024 to Ba2 credit rating, where “Fitch” has assigned it BB+(EXP) credit rating.
For the Agencies’ reports, please refer to the following links:
Moody’s:
https://www.moodys.com/research/Moodys-assigns-a-Ba2-rating-to-ACCs-proposed-certificates-with--PR_442634
Fitch:
https://www.fitchratings.com/research/corporate-finance/fitch-rates-arabian-centres-company-upcoming-sukuk-bb-exp-25-03-2021
This announcement is not intended as an invitation or offer to purchase, acquire or subscribe to any securities. The Company will announce any other relevant material development to its shareholders in due course.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.