Rawabi Holding Company Successfully Concludes Landmark Sukuk Issuance Raising SAR 1.2 Billion

• Strong investor support demonstrates confidence in Company’s operations and financial track record
• Issuance expanded 2.8 times, superseding 2023 issuance of SAR 875 million

Al Khobar: Gulf Tech News

Rawabi Holding Company (“Rawabi” or the “Company”) successfully concluded its largest ever Saudi Riyal-denominated Sukuk issuance for SAR 1.2 billion, further cementing its position as a dominant catalyst in Saudi financial markets.

Led by strong market demand, the landmark issuance surpasses the Company’s 2023 issuance of the SAR 875 million. Since establishing its Sukuk program in 2020, Rawabi Holding has issued approximately SAR 6.5 billion of Sukuk across 18 tranches and redeemed seven tranches totaling approximately SAR 2.9 billion.

The Company’s strong credentials and positive track record of Saudi Riyal-denominated Sukuk issuances, including refinancing maturing Sukuk, distinctly highlights Rawabi Holding as the most active regular issuer in the growing Local Currency Debt Capital Markets (DCM).

The strong credit worthiness, growing operations and key contribution of the Group’s operations to the Saudi economy attracted the support of the investment community. This support resulted in upsizing the transaction after the coverage exceeded 2.8x the initial issuance size.

This year, Rawabi Holding has exceeded its track record of diversification of its investor base, comprised of:

• 41% of the Investors are Asset Managers and Funds
• 10% Bank Treasuries
• 39% Wealth Management
• 7% Corporate and Agencies
• 3% Insurance, Awqaf and Endowments

The Company’s ability to diversify its funding sources, building strong long-term relationship with DCM investors, and solid ties within the banking system, successfully mitigates the risk of cyclical liquidity in the market. This is in line with the Company’s risk management policies and aligns with capital structure management best practice.

Albilad Capital, Alinma Investment Company, Al Rajhi Capital, and Riyad Capital, acted as joint lead managers and bookrunners for the Transaction. Simmons & Simmons Middle East LLP acted as transaction adviser.

Ahmad Al-Shubbar, Chief Financial Officer at Rawabi Holding Company, said: “We are pleased to receive the support of our investor community which allowed for the successful issuance of our largest ever Sukuk, a testament to our credit story, growing operations, and investors’ trust, powered by our ambitious leadership.”

He added: “This year, we have further diversified our investor base, cementing Rawabi Holding as the most diverse Local Currency Fixed Rate base and Privately Placed Sukuk. By unlocking capital, the landmark issuance strengthens Rawabi Holding’s commitment towards supporting the sustainable growth of the economy of the Kingdom of Saudi Arabia, development of Saudi Debt Capital Markets and leading national champions, in line with the Vision 2030. The Transaction is a testament to the confidence in the Kingdom’s economy and robust growth prospects.”