The Saudi mall operator successfully tightens pricing on the 5-year issuance, with the final orderbook reaching $880 million.
Saudi Arabia’s leading mall operator, Cenomi Centers, has successfully priced a $500 million sukuk issuance, attracting significant investor interest that allowed it to tighten the final pricing.
The Reg S benchmark sukuk, structured with a five-year maturity and a non-call period for two years (5NC2), was priced with a yield of 9.125%. This was a improvement from the initial price thoughts, which were in the 9.375% area. The sukuk carries a coupon of 8.875%.
The offering saw robust demand, with the final orderbook closing at approximately $880 million, far exceeding the issuance size. This strong appetite, which peaked at over $990 million, enabled the company to secure more favorable terms.
Proceeds from the sukuk will be used to refinance the company’s existing $875 million bond maturing in October 2026, as well as to repay other bank debt. This move strengthens Cenomi Centers’ balance sheet by extending its debt maturity profile.
The sukuk, which is expected to receive a BB rating from Fitch and B+ from S&P, was structured as a fixed rate Wakala Murabaha. It will be listed on The International Stock Exchange (TISE) under the company’s $1 billion trust certificate issuance program.
A consortium of international and regional banks, including Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, and Goldman Sachs, were mandated as joint global coordinators and bookrunners on the deal.