Saudi mall operator Arabian Centres signs $1.4 bln in Islamic financing facilities

Saudi Arabia’s shopping mall operator Arabian Centres has signed a term ijarah facility, and term and revolving murabahah facilities with a syndicate of banks.

The company said in a filing on Tadawul, the Saudi stock exchange, on Wednesday (Nov 20) that the total financing is $1.4 billion, or its equivalent in Saudi riyals.

The four facilities are a 3-year revolving murabahah, a 12-year murabahah tranche B, an 8-year ijarah tranche A, and a 12-year ijarah tranche B.

Arabian Centres said the financing will be used to repay existing debts, pay fees, costs and expenses incurred in connection with existing debts, and to fund its general corporate purposes.

Samba Financial Group was appointed global agent.

The book runners and mandated lead arrangers were Goldman Sachs International, Samba Financial Group, the Saudi British Bank, Abu Dhabi Commercial Bank, the National Commercial Bank, Arab National Bank, Al Rajhi Banking and Investment Corporation, and Mashreq Al Islami.

Samba Financial Group served as Ijara Investment Agent, Murabaha Investment Agent, Security Agent, and Account Bank.

The financing facilities come immediately after Arabian Centres announced the completion of a 5-year $500 million sukuk issue on Wednesday (Nov 20).

The company currently holds 19 malls in 10 Saudi cities in its portfolio, including 4,000 retail stores, according to its website.

The company went public in May this year, in an initial public offering (IPO) that raised 2.47 billion riyals ($659 million).

It reported 208.2 million riyals ($55.52 million) in profit for the three months ending September 30, an increase of 6.46% from the same second-quarter last year. Its fiscal year ends in March.

($1 = 3.75 Saudi riyals)

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