Riyadh - Mubasher: Riyad Capital, a leading asset manager within Saudi Arabia and the GCC region, has issued SAR 500 million in SAR-denominated Sukuk for Sumou Global Investment Company.
The three-year issuance marks the first of its kind offering for the Saudi real estate sector, according to a press release.
The Sukuk has a coupon of 8.50% payable on a quarterly basis. This transaction aims to diversify the company’s funding sources and boost capital for long-term growth.
Initially, the offering stood at SAR 300 million and was upsized to SAR 500 million due to strong demand. Meanwhile, Riyad Capital acted as sole arranger and bookrunner.
Abdullah Alshwer, CEO of Riyad Capital, said: "This level of demand highlights a strong investor appetite for a compelling investment opportunity and interest in Saudi Arabia’s growing real estate sector, which remains central to the Kingdom’s economic diversification and long-term development plans under Vision 2030.”
Abdullah Al Medmeigh, Managing Director, Corporate Investment Banking, at Riyad Capital, noted: “The exceptional upsizing by over 65% to SAR 500 million is a direct result of Sumou’s compelling credit story and a meticulously prepared investor outreach strategy.”
Abdulrahman Al Qahtani, CEO of Sumou Real Estate, commented: “The Sukuk issuance aligns with SGI’s long-term vision to diversify its funding sources and support ambitious growth initiatives.”
“The success of this transaction not only secures vital capital for our growth initiatives but also establishes a benchmark for future Sukuk issuances in the sector,” the CEO continued.
