Sumou Global Investment raised SAR 500 mn in SAR-denominated sukuk offered via private placement as the company tapped the debt market for the first time, the issuance’s sole arranger and bookrunner Riyad Capital said in a press release yesterday. The offering — which marks the first sukuk issuance of its kind in the Kingdom’s real estate sector — was upsized from SAR 300 mn after attracting almost twice the intended subscriptions from institutional and retail investors.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

More details: The three-year senior secured sukuk issuance pays an 8.5% coupon quarterly. Proceeds will be allocated to support the company’s long-term funding diversification and growth plans.

ICYMI- Sumou Global Investment, Sumou Real Estate Company, and Al Jazira Capital signed a contract earlier this year to establish a real estate investment fund to acquire and develop lands in the Kingdom, with a project pipeline valued at upwards of SAR 2 bn.

Tags: