Saudi Fransi Capital announced that it has successfully completed the issuance of five-year sukuk worth 1 billion riyals for Abdullah Al-Othaim Investment and Real Estate Development Company – OREIDCO, with the sukuk (a guaranteed initial offering) issued by OREIDCO Sukuk Limited through a private placement in the Kingdom of Saudi Arabia.

The sukuk attracted significant interest from major investors in the Kingdom, with strong demand from government-owned investment funds, banks, asset managers, corporations, and insurance companies. The sukuk were priced at 1.7%, which is higher than the Saudi Interbank Offered Rate (SAIBOR), with a semi-annual coupon payment schedule. The company has appointed GIB Capital, Saudi Fransi Capital, and Al-Ahli Capital as financial advisors and lead managers for the offering.

Through its subsidiaries, Oredco develops and operates shopping malls in the Kingdom of Saudi Arabia, as well as entertainment, leisure, and hospitality facilities in the United Arab Emirates, Egypt, and certain neighboring markets.