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    Vallianz taps into Saudi Sukuk Market

    Company News // February 22, 2016

    Vallianz Holdings Limited has successfully entered the Sukuk market in the Middle East with its maiden Saudi Riyal denominated Sukuk issuance of SAR1.0 billion (US$266.7 million).

    The Shariah-compliant Sukuk was facilitated through Rawabi Vallianz Offshore Services Limited and jointly led and managed by four financial institutions in Saudi Arabia – Alinma Investment Co., Saudi Fransi Capital, Saudi Hollandi Capital and GIB Capital LLC.

    The Sukuk has a fixed term of five years, with certain amortised principal repayments during the term and a bullet repayment of the remaining principal amount at the end of the tenure.

    Alinma Investment Co is a subsidiary of Alinma Bank and provides a full range of Shariah-compliant investment products and services. Saudi Fransi Capital is a fully-owned subsidiary of Banque Saudi Fransi and a member of the Saudi Stock Exchange. Saudi Hollandi Capital is an independent investment subsidiary of Saudi Hollandi Bank. GIB Capital LLC is a wholly-owned investment banking arm of Gulf International Bank.

    Sheikh Abdulaziz Alturki, Group Chairman of Rawabi Company Holding Limited and Chairman of RVOS, said: “Saudi Arabia is the ideal location to issue our first Sukuk as the country’s financial institutions and investors have deep knowledge and familiarity with the oil and gas business in the region.

    "Sukuk has become a prominent financing product in the world. It is an important funding channel that can provide the required liquidity to finance projects at an acceptable cost, as well as pave the way for other means of funding from financial and non-financial institutions, and individuals.”

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