Almarai Successfully Completes USD 500 Million International Sukuk Issuance

Almarai Company, the leading food and beverage company in the region, announced the successful completion of its international sukuk issuance, raising USD 500 million under its USD 2 billion RegS International Sukuk Program. The sukuk carry a five-year tenor maturing in 2030 and has been listed on the Global Exchange Market of Euronext Dublin.

The transaction was launched and priced within a single day, reflecting the company’s strong market access and execution capabilities. The issuance attracted robust investor demand, with peak orderbook subscriptions reaching USD 2.1 billion, and closing at over USD 1.9 billion, representing 3.8x oversubscription.

The sukuk achieved the tightest credit spread ever for a BBB- (S&P) / Baa3 (Moody’s) rated corporate issuer in the GCC, pricing at T+85 basis points, representing a 35-bps tightening from initial guidance. The issuance was priced at a competitive annual profit rate of 4.45%, underscoring investor confidence in Almarai’s solid credit profile.

This transaction marks Almarai’s return to the international debt capital markets since its last issuance in July 2023, further highlighting the company’s strong financial fundamentals and the recognition of its credit strength by global investors.

It is worth noting that Almarai is the world’s largest vertically integrated dairy company, the largest food and beverage producer and distributor in the Middle East, and ranked the fourth most valuable dairy brand globally by Brand Finance. Its products reach over 150 million consumers across the GCC, Egypt, and Jordan.