The Savola Group Company (Savola) plans to establish a Sukuk Programme and issue sukuk thereunder either directly or through launching a special purpose vehicle (SPV).
The SPV will be established inside or outside of Saudi Arabia to issue and offer senior and/or subordinated sukuk in one or more tranches or through one issuance or a series of issuances pursuant to the Programme within the Kingdom, Savola said in a statement to the Saudi Stock Exchange (Tadawul) on Thursday.
The company will issue domestic sukuk worth SAR 5.3 billion at any time to fulfil its financial and strategic needs.
The offer will be subject to the approval of the relevant regulatory authorities and will be made in compliance with applicable laws and regulations.
On Wednesday, the company’s board has approved the establishment of the programme and the issuance of sukuk thereunder.
The board has also approved the offer of the first issuance under the Programme, subject to the market conditions and in line with the firm’s financial and strategic needs.
The first issuance shall be in exchange for monetary consideration or in exchange of all or some of the Sukuk issued in January 2013, as deemed appropriate by the company.