Investment Banking

Our solid track record of sound financial performance and investment management has allowed us to structure innovative and strategic Sharia-compliant deals for our clients.
The services we offer include Mergers and Acquisitions, Capital Advisory (Equity and Debt) as well as structuring finance products and solutions

We take pride in the fact that our company is a pioneer in several capital market solutions in the GCC.

Sukuk AlKathiri


Prospectus

 

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Issuer

Sukuk AlKathiri a Special Purpose Entity established under CMA License No. (SPE00034)

Sponsor

Al Kathiri Holding a Saudi Public Listed Company on Tadawul

Sponsor Rating

SIMAH Rating Agency (Tassnief): “BBB-“ Stable outlook

Programme

Sukuk Issuance Programme that will issue Sukuk in series of separate issuance (each a “Series”) in accordance with the Conditions and the Applicable Final Terms in relation to the individual Sukuk issued in respect of each Series (the “Applicable Final Terms”).

Size of Programme

The issuance of up to SAR (500,000,000) in aggregate nominal amount of Sukuk that will be offered in series of separate issuance (each a “Series”) in accordance with the Conditions and the Applicable Final Terms in relation to the individual Sukuk issued in respect of each Series (the “Applicable Final Terms”).

Sukuk Structure

51.00% Mudaraba and 49.00% Murabaha

Sukuk Status

Senior/Unsubordinated, Unsecured

Total Issue Size of the First Series (Series 1)

Target issue size for the first series of issuance is a minimum amount of SAR 100,000,000

Tenor of Sukuk

(Series 1)

Five (5) years, with the principal amount to be paid at maturity date

Annual profit rate

(Series 1)

8.50% per annum

Periodic distribution of profits

(Series 1)

The profits will be paid on a Semi-Annual basis

Nominal value per Sukuk

SAR 1,000

Minimum value of subscription

SAR 5,000

Offering Period

Starts from 12/03/2023G and ends on 23/03/2023G

Listing

The Sukuk will be listed and traded on Tadawul

Registrar

Securities Depository Center Company (“Edaa”)

Receiving Entities

Riyad Bank, Arab National Bank, Dinar Investment

Financial Advisor, Sole Arranger, Sukukholders’ Agent’s Delegate, and Payment Adminstrator

AlKhair Capital Saudi Arabia

FAQs:

Subscription Period starts on 12/03/2023G and ends on 23/03/2023G.

The final allocation of the Sukuk Offering will be announced on 30/03/2023G.
Please refer to Sukuk AlKathiri dedicated website www.saudiexchange.com

The refund of excess subscription monies (if any) will begin on 02/04/2023G.

Settlement of the offered Sukuk will be on 30/03/2023G.

Trading of the Offered Sukuk on the Saudi Arabia Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced on the Saudi Exchange website www.saudiexchange.com

You can find information about Al Khathiri Holding Company on their website www.alkathiriholding.com and by visiting Sukuk AlKathiri website www.sukukalkathiri.com
You can download the Prospectus from the Sukuk AlKathiri dedicated website and the Capital Market Authority’s website https://cma.org.sa/en/Market/Prospectuses/Documents/ALKATHIRI_EN.pdf

The total number of Sukuk on offer are 100,000 Sak.

The par value for each Sukuk is SAR 1,000.

The total value of the Sukuk being offered is SAR 100,000,000 (100,000 Sak with a par value of SAR 1,000 per Sak).

The proceeds of the issuance of Sukuk will be used for the purposes of Al Kathiri Holding Company general corporate use to meet its financial and strategic objectives.

Investors can subscribe at the announced fixed coupon rate of 8.50% per annum

Periodic distribution for the offered Sukuk is paid Semi -Annual commencing from the Settlement Date of the Sukuk.

The Sukuk will have a Five (5) years Tenor, and at Maturity the Issuer will repay the principal amount raised from investors.

All applications received during the offer period will be treated equally

Any natural and legal persons in the Kingdom and any other relevant jurisdiction.

You can subscribe through the receiving banks website or digital application provided that the following requirements are satisfied:
– Investors must have a bank account with one of the receiving banks
– there have been no changes in the personal information or data of the Investor since such person’s subscription in the last initial public offering

You can subscribe through the lead manager by visiting the dedicated subscription webpage ipo.alkhaircapital.com.sa

Receiving banks participating in the IPO, the names of which are disclosed in the Applicable Final Terms and the Sukuk AlKathiri website www.sukukalkathiri.com

The minimum subscription amount per investor is 5 Sukuk equivalent to SAR 5,000 on the basis that the denomination of each Sak is SAR 1,000.
There is no maximum limit for investors as they may choose to apply for as many Sukuk as they wish to.

The Sukuk will be listed on Tadawul, and they can be traded by investors like any other listed financial instruments on Tadawul.

Sukuk are Sharia-compliant debt instruments issued by governments and corporates in return for a profit rate that is distributed periodically for the purpose of financing their budgets, projects, and expansion plans.

Sukuk usually have a maturity date and at such date the issuer of the Sukuk pays off the principal (the value of Sukuk) raised from investors.

A Sukuk issuance programme allows the issuer to issue Sukuk from time to time in series of separate issuance (each a “Series”) in accordance with the Terms and Conditions of the Sukuk and subject to the applicable final terms that apply to that series.

Sukuk issued in respect of each Series under the programme are the subject of a final terms document for that Series (the Applicable Final Terms) and references to the Applicable Final Terms are to the final terms of that Series.
The Applicable Final Terms supplement the general Conditions of the Sukuk referenced in the prospectus and may specify other terms and conditions which include offering period dates, issuance size, profit rate, maturity, and other terms in respect of each series under the programme.

It is a Special Purpose Entity that is Sponsored by Al Kathiri Holding Company and is established under the CMA License No. (SPE00034) and in accordance with the Rules for Special Purposes Entities, for the purpose of issuing debt-based instruments based on the Islamic principles of Mudaraba and Murabaha.

It is a partnership contract between two parties, which requires the payment of a particular amount of money from one party to another for trading purpose, and they will share the profits based on what agreed upon.

It is a form of sale agreement entered between a seller (financier) and purchaser (borrower) where the cost of the commodity to be sold as well as the profit on the sale is known to both parties. The purchase and selling price of the commodity and the profit margin are clearly stated at the time of the sale agreement.

For additional clarifications:
– Visit the Contact Us section through Sukuk AlKathiri webpage www.sukukalkathiri.com or by visiting Al Khathiri Holding Company on their website www.alkathiriholding.com
– Contact the Lead Manager through email at sukukalkathiriipo@alkhaircapital.com.sa or by visiting the webpage www.alkhaircapital.com.sa