Closing Bell: Banque Saudi Fransi raises $810m in sukuk issuance to strengthen capital base

RIYADH: Banque Saudi Fransi completed the issuance of additional tier-one sukuk, raising SR3 billion ($810 million) under its SR8 billion capital program. 

The privately placed sukuk, denominated in Saudi Riyals, offers a 6 percent return per annum. 

According to a statement on the Saudi Stock Exchange, or Tadawul, each sukuk has a nominal value of SR1 million and is perpetual, with provisions for early redemption under specific conditions, such as a capital event or tax event. 

This issuance marks a strategic move to bolster the bank’s capital base and support long-term growth objectives, following initial disclosures made on Tadawul in August. 

Meanwhile, the Saudi Stock Exchange’s Tadawul All Share Index closed down 65.05 points, or 0.53 percent, at 12,117.15. The day saw a total trading turnover of SR6.85 billion, with 90 stocks advancing and 131 retreating. 

Red Sea International Co. emerged as the top performer, with shares rising 9.9 percent to SR45.50. Saudi Arabian Amiantit Co. and Saudi Real Estate Co. also saw gains, with share prices up 6.7 percent and 5.59 percent, respectively. 

In contrast, Jabal Omar Development Co. was the worst performer, with a 3.54 percent drop to SR25.9. 

On the announcement front, United Mining Industries Co. released its interim financial results for the first half of 2024. 

UMI reported a 5.5 percent increase in sales for the six months ending June 2024 compared to the same period last year. 

This growth is primarily attributed to a shift in the company’s sales mix and the successful implementation of new marketing strategies to enhance market penetration and customer engagement. 

However, the company’s net profit for the first half of the year declined by 36 percent compared to the corresponding period in the previous year. 

The decrease is largely due to provisions set aside in response to a legal claim involving the General Authority of Competition.