JEDDAH – Power and Water Utility Company for Jubail and Yanbu (Marafiq) has successfully closed recently its debut sukuk issuance in the amount of SR2.5 billion. HSBC Saudi Arabia were the sole lead managers to the issue and also acted as Shariah structure agent, payment administrator and sukuk holders' agent. The sukuk, based on Al-Istithmar structure, was offered to sophisticated investors under the private placement format. The 5-year sukuk offers investors an attractive yield linked to the 6-month Saibor and has received strong support from a broad cross section of the investor community. Marafiq's debut sukuk issuance raised the full amount the company had aimed in its current round of financing. The proceeds of the sukuk will be used for general corporate purposes including part funding of its ongoing expansion program. The sukuk issuance is a component of Marafiq's strategic medium term fund raising program that is intended to ensure availability of funds to support Marafiq's ability to meet the growing power and water multi-utility requirements in the industrial cities of Jubail and Yanbu. Speaking at the closing ceremony held in Al-Khobar, Thamer Saud Al-Sharhan, Marafiq's President and CEO, said “the successful debut issuance of sukuk is our humble contribution to the development of debt capital market in the Kingdom of Saudi Arabia.” He thanked the general investing community for their overwhelming response. Waleed Khoury, CEO of HSBC, said "we see Marafiq's sukuk issuance as an important step in the continuing development of the sukuk market in Saudi Arabia." — SG
