Saudi dairy firm Almarai plans Islamic bond sale

Saudi dairy firm Almarai plans Islamic bond sale

Shareholders will be asked to approve the company's bond issue programme, and to authorise its board of directors to issue the sukuk, once all regualtory approvals are in place.

October 16, 2011 9:12 by Reuters

Saudi Arabia’s Almarai Co is to seek shareholder approval of its plan to issue Islamic bonds, or sukuk, at a general assembly meeting on Nov. 19, the company said in a bourse statement on Sunday.

Shareholders will be asked to approve the company’s bond issue programme, and to authorise its board of directors to issue the sukuk, once all regualtory approvals are in place.

No timeframe or further details of the bond issuance were given.

The dairy firm made 349.2 million riyals ($93.12 million) during the second quarter. It has plans to invest 4 billion riyals ($1.1 billion) in the poultry sector.

Almarai shares are over 20 percent down so far this year on the Saudi bourse after ending the previous year 35 percent higher. (Reporting by Rachna Uppal; Editing by)