DUBAI: Savola Group, Saudi Arabia's largest food products company, confirmed on Tuesday it had raised 1 billion riyals ($267 million) in sukuk, or Islamic bonds, in a deal arranged by the Saudi arm of HSBC.
Savola made the deal public in a bourse filing, confirming what sources familiar with the matter had earlier told Reuters.
Savola and other consumer goods companies in Saudi Arabia are suffering from the effects of subsidy cuts, the introduction of VAT sales tax and an exodus of expatriates, which have all put pressure on consumer spending.
The company had said in May it planned to issue the bonds to back its financial and strategic needs.
Savola's bonds, issued last week, offer investors a profit rate equivalent to 160 basis points over the 6-month Saudi interbank offered rate.
One of the sources said the deal was priced at the level at which it was initially marketed, which is unusual in bond markets, where new issues tend to price below initial price guidance, reflecting demand.
A spokesman for Savola referred to the company's filing, which said subscription requests for the new bonds exceeded the issuance value by more than 1.6 times.
HSBC declined to comment.
Around half the value of the privately placed sukuk, with a seven-year maturity, was exchanged with previous Islamic bonds issued by the company, Savola said.
Savola's issue comes after Saudi Arabia this year reduced fees for new debt offerings and annual registration charges for issuers, as part of efforts to spur local market activity. ($1 = 3.7503 riyals)
Saudi Arabia’s Savola issues 1-billion riyal sukuk
Saudi Arabia’s Savola issues 1-billion riyal sukuk
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
