National Shipping Co. of Saudi Arabia, better known as Bahri, has closed the issuance of SR3.9 billion ($1.04 billion) sukuk with 1.95 times oversubscription.

The Saudi riyal-denominated seven-year senior unsecured sukuk were issued by way of a private placement offer at a competitive floating profit rate of 120 basis points above the six-month Saudi Arabian Interbank Offered Rate, the company said in a press release.

The company will use the proceeds to refinance its existing sukuk which will mature in July, according to a statement.

”This strategic transaction represents a key milestone for Bahri and highlights the confidence investors have placed in the company,” said CEO Ahmed Alsubaey.

Al Rajhi Capital Co., HSBC Saudi Arabia, and SNB Capital Co. acted as lead managers and book runners of the offer.

Bahri, a joint venture between Saudi Aramco and the Public Investment Fund, operates a fleet of 89 tankers and container ships that transport oil, petrochemicals, and other types of cargo.
Source: Arab News