November 20, 2019 / 2:24 PM / 17 days ago

Arabian Centres raises $500 mln via debut Islamic bond

DUBAI, Nov 20 (Reuters) - Saudi shopping mall operator Arabian Centres has raised $500 million via its debut international Islamic bond sale, part of a $1.9 billion refinancing exercise.

The issuance was four times oversubscribed, the company said in a statement on Wednesday.

Arabian Centres started marketing the Islamic bond on Tuesday with an initial price guidance of 5.75%, which was later reduced to 5.5-5.625%, documents by one of the banks leading the deal showed.

The bond or sukuk coupon rate eventually shrank to 5.375%, reflecting hefty demand.

The company went public earlier this year with a 2.8 billion riyal ($746.65 million) initial public offering in Saudi Arabia, the kingdom’s third biggest since Saudi lender National Commercial Bank raised $6 billion in 2014.

“Having executed a successful initial public offering of our stock ... we are very pleased to further diversify our funding mix by tapping into the debt capital markets,” Olivier Nougarou, CEO at Arabian Centres, said.

In addition to the sukuk, the company raised dual-currency Islamic term loans worth $1.2 billion and a revolving loan worth $200 million. The facilities refinance existing debt and extend the firm’s debt maturities, it said.

Arabian Centres, which operates 21 malls across Saudi Arabia, is working on six additional projects expected to be completed by 2024 and is building cinemas after a decades-long ban on movie theatres was lifted last year.

Goldman Sachs and HSBC were the coordinators of the Islamic bond sale, and worked as joint bookrunners with Credit Suisse, Emirates NBD Capital, Mashreqbank, Samba Capital and Warba Bank . ($1 = 3.7501 riyals) (Reporting by Davide Barbuscia. Editing by Jane Merriman)

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