Riyadh, Saudi Arabia, -Thursday 21 November 2019 [ AETOS Wire ]
Arabian
Centres Company (“ACC” or “the company”), the leading owner, developer
and operator of lifestyle shopping centres in Saudi Arabia, announced
today the completion of the offering and pricing of its USD 500 million
Sukuk issuance, part of a successful USD 1.9 billion refinancing package
comprising both the Sukuk and new bank debt, with settlement of the
Sukuk to take place on 26 November 2019.
The
fixed-rate, US dollar-denominated Sukuk, with a tenor of 5 years,
carries a coupon rate of 5.375%. The issue was 4 times oversubscribed,
with Non GCC international investors accounting for 84% of the total
transaction allocation and is accompanied by an inaugural Issuer Rating
of BB+ from Fitch Rating Agency and Ba1 from Moody’s. The strength and
depth of the book demonstrated global investors’ strong appetite for
Saudi exposure and Arabian Centres lifestyle offering. This transaction
represents a milestone capital raise for the private sector in Saudi
Arabia giving Arabian Centres access to global debt capital markets, and
more favorable credit terms, which optimizes the capital structure
commensurate with its strong financial position. For international
investors, it represented an attractive option to gain exposure to the
Saudi consumer and retail real estate sectors at time of dynamic shifts
in consumer preferences.
“Having
executed a successful initial public offering of our stock and
familiarized the broader market with our unique value proposition, we
are very pleased to further diversify our funding mix by tapping into
the debt capital markets,” said Olivier Nougarou, CEO at ACC. “As we
expand our portfolio of prime leisure hubs in the Kingdom’s most
important population centres, this transaction will provide ACC with
optimum cash resources and liquidity to pursue our medium-term expansion
plans and develop the world class retail product that the sophisticated
Saudi consumer now demands.”
As
part of its holistic capital optimization strategy, the company has
also signed new Ijara and Murabaha term facilities together with a
revolving Murabaha facility, which, in combination with the Sukuk
proceeds, will refinance ACC’s existing bank facilities, extending the
company’s debt maturity profile, increasing flexibility to invest in the
business and reducing secured debt as a proportion of the company’s
overall borrowing.
Specifics of the transaction include:
- i) a senior unsecured Shari'ah compliant Sukuk offering of SAR 1.9 billion (USD 500 million); and
- ii) senior secured Ijara and Murabaha duel currency term facilities of SAR 4.5 billion (USD 1.2 billion) and a senior secured dual currency revolving Murabaha facility of SAR 0.75 billion (USD 200 million).
“We
believe that the surest way to ensure sustainable growth and drive
footfall in our properties is to deepen and broaden the Company’s market
reach by investing further in the lifestyle experiences offered at our
properties — and by providing a diverse range of differentiated shopping
and entertainment experiences,” Nougarou added. “With six projects
expected to provide more than half a million square meters of additional
GLA by 2024 and new entertainment destinations planned across the
Kingdom in ACC’s near-term pipeline, we are highly confident in the
ability of ACC’s business model to continue delivering superior returns.
To this end, an optimal capital structure will place the Company in a
prime position to benefit from favorable long-term macro fundamentals
and the Kingdom’s growing commitment to the development of leisure,
entertainment, and culture.”
Joint Global Coordinators for the Sukuk: Goldman Sachs International and HSBC Bank plc.
Joint Lead Managers and Joint Bookrunners for the Sukuk: Goldman
Sachs International, HSBC Bank plc, Credit Suisse Securities (Europe)
Limited, Emirates NBD Capital Limited, Mashreqbank psc, Samba Capital
and Investment Management Company and Warba Bank K.S.C.P.
Legal Advisors:
White & Case LLP and The Law Firm of AlSalloum and AlToaimi in association with White & Case LLP acted for the Issuer
Clifford Chance LLP and Abuhimed Al-Sheikh Al-Hagbani Law Firm acted for the Banks
Financial Advisors:
Houlihan Lokey (MEA Financial Advisory) Ltd. and Swicorp were Financial Advisers to ACC
About Arabian Centres Company
Arabian
Centres is the leading owner, operator and developer of contemporary
lifestyle centres in Saudi Arabia. For over a decade, the Company has
provided customers with a complete range of high-quality lifestyle
centres up to international standards, located in the most attractive
areas of the country to satisfy all shopping needs and market
requirements. As of 30 September 2019, Arabian Centres operates a
portfolio of 21 assets strategically located in 10 major Saudi cities.
The Company’s developments include several iconic lifestyle centres,
such as Mall of Arabia Jeddah, Mall of Dhahran, and Nakheel Mall Riyadh –
which was recognized at the Arab Luxury World Forum in 2017 as being
consumers' favourite shopping mall in Riyadh. The Company’s lifestyle
centres have more than 4,100 stores and hosted 109 million visitors in
FY2019. For more information about Arabian Centres Company, please visit
www.arabiancentres.com
Please click on link for full statement.
This announcement is not being made in
and copies of it may not be distributed or sent into the United States,
the United Kingdom, Canada, Australia or Japan or any other
jurisdiction where to do so would be unlawful.
Contacts
Investor Relations Department
Rayan Al Karawi, +966-11-825-2080
