Savola to repurchase additional SAR 81M sukuk

Savola Group announced today, Dec. 22, its plan to buy back an additional SAR 81 million worth of sukuk from its SAR 1 billion issuance in 2019, maturing in 2026.

In a statement to Tadawul, the company said this would increase the total redeemed sukuk to 94% of the SAR 1 billion initially issued. Once the repurchase is completed, the group intends to cancel the repurchased sukuk, under the relevant terms and conditions.

The group clarified that the sukuk being repurchased are denominated in Saudi riyals and were privately placed, representing 8.1% of the total issuance, equivalent to 81 sukuk.

Each sukuk has a nominal value of SAR 1 million at redemption, which will reduce the total outstanding sukuk value to SAR 60 million following the transaction. The redemption proceeds are scheduled to be deposited into sukuk holders’ accounts on Dec. 24.

HSBC Saudi Arabia will oversee the deposit process and communicate with the respective beneficiaries, according to the statement.

The financial impact of this transaction is expected to appear in the company’s 2024 annual financial statements.

According to data available with Argaam, Savola recently bought back SAR 859 million worth of Sukuk from its SAR 1 billion issuance in 2019 and maturing in July 2026, with a redemption ratio of 85.9% and a total of 859 Sukuk.