Saudi Arabia’s Cenomi Centers tightens price on $500mln 5NC2 Reg S sukuk

Saudi Arabia’s shopping mall operator and developer Arabian Centres Company (Cenomi Centers) priced its $500 million five-year (non-call for two years) benchmark sukuk with an 8.875% coupon and a re-offer price of 99.014. The yield was set at 9.125%.

The initial price thoughts of the Reg S senior unsecured Eurobond was in the 9.375% area.

The orderbook peaked over $990 million, before settling on $880 million, including $120 million of JLM interest.

According to ratings agency Fitch, the bond has room for “slight outperformance in the secondary market post issue.”

The fixed rate Wakala Murabaha structure is expected to be rated BB by Fitch and B+ by S&P, in line with the issuer’s own rating.

The Tadawul-listed company has mandated Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, Goldman Sachs International (B&D) and Mashreq as joint global coordinators and bookrunners, alongside Arqaam Capital, Dubai Islamic Bank, First Abu Dhabi Bank, JP Morgan Securities, RAKBank and Sharjah Islamic Bank as joint lead managers and bookrunners.

The sukuk will come under Cenomi Centers’ $1 billion trust certificate issuance programme, with Arabian Centres Sukuk IV Limited listed as the trustee. It will be listed on The International Stock Exchange (TISE).

Emirates NBD Capital is the sole Islamic structuring bank on the offering.

Proceeds will refinance the company’s existing $875 million bond maturing in October 2026 as part of a concurrent tender offer, along with repaying bank debt.