AJIL Issues SAR 500 million Sukuk via Riyad Capital and GIB Capital
AJIL Financial Services Company C.J.S.C. has successfully issued its first off-balance sheet Sukuk in the Kingdom of Saudi Arabia for 500 million Saudi Riyals. The inaugural Sukuk was priced at 3 month SAIBOR plus 80 basis points with an Issue Price at par.
The Sukuk is issued by AJIL Cayman, a limited liability special purpose company incorporated in the Cayman Islands. The Sukuk holders will also benefit from a purchase undertaking issued by Riyad Capital and Gulf International Bank BSC, the first time such a credit enhanced structure has been employed in the Saudi domestic capital markets.
Riyad Capital and GIB Capital acted as joint lead managers and joint book runners to the issuance while Riyad Capital also acted as the Coordinator of the transaction.
Commenting on this inaugural Sukuk, Mr. Usman Mahmood, CEO of AJIL Financial Services Company said: “We are delighted to have closed our inaugural Sukuk at the finest pricing level achieved by a non-governmental issuer since 2008. The level of oversubscription is also testament to investors’ support of AJIL and the credit quality of the structure. This issue represents an innovative off-balance sheet Sukuk based on the sale of Sukuk assets incorporating a credit-wrapped structure.”
Mr. Azaz Ahmed, the General Manager of AJIL, added, “This enables us to diversify funding sources as well as to raise funds with good pricing”.