Cenomi Centers has initiated plans to issue a six-year sukuk, contributing to its $1.15 billion sukuk programme. The move underscores Saudi Arabia’s significant role within the global sukuk market, an area the Kingdom continues to develop robustly.
Cenomi Centers, formerly known as The Arabian Centres Company, is recognised as a key player on the Tadawul stock exchange, focuses on the development and management of modern lifestyle hubs across Saudi Arabia. The company’s decision to pursue this sukuk is particularly noteworthy given the 8.5% annual coupon rate being proffered, indicating a substantial yield which may attract significant interest from regional investors prioritising Shariah-compliant financial instruments.
The company has opted to engage Al Rajhi Capital, a prominent financial institution, to steward the issuance as its advisor, lead manager and dealer.
The specific sukuk will be a Reg S issuance, targeted primarily at non-US institutional investors, a standard practice in the sukuk market aimed at facilitating easier trading and attracting varied international interest.
The proceeds from the sukuk will likely aid in furthering Cenomi’s extensive portfolio of Saudi-based projects, including developments like Jawharat Riyadh and Jawharat Jeddah. These developments are central to the company’s strategy of expanding its footprint in the Kingdom and providing state-of-the-art shopping and entertainment venues.
This particular issuance arrives amidst a backdrop of heightened activity within the Saudi sukuk market, which has seen increasing participation from various sectors.
