GIB arranges SR500m sukuk for Ajil Cayman
GIB Capital, acting as joint lead manager and joint book runner with Riyad Capital, has successfully closed Ajil Financial Services Company’s privately placed SR500 million Sukuk, issued via Ajil Cayman – a limited liability special-purpose company incorporated in the Cayman Islands.
The inaugural Sukuk has a 3-year tenor with an amortising structure and pays a coupon of 3-month SIBOR plus 80 basis points quarterly. The Sukuk was issued at par.
“We are pleased to have assisted Ajil in arranging their debut Sukuk. This ‘off balance sheet’ Sukuk is an innovative structure incorporating a credit wrap in the form of a Purchase Undertaking from Gulf International Bank (GIB) and Riyad Bank. The underlying creditworthiness of the structure along with the credit enhancement provided by the Purchase Undertaking received a very positive response from investors,” Srinivas Vemparala, Chief Executive Officer of GIB Capital, said.
“The issue was oversubscribed and priced at the lowest margin achieved by a non-governmental issuer in the Saudi Riyal market since 2008. The success of this transaction demonstrates GIB Capital’s debt capital markets structuring and placement expertise, and we are confident that this Sukuk will set up a benchmark for Ajil for their future issuances,” he added.
GIB Capital was established in 2008 as a fully-owned subsidiary of GIB to carry out investment activities within Saudi Arabia and is duly authorised by the CMA.
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