headerblue

Saudi German Sukuk

Investment Banking

Sukuk are Islamic Sharia-compliant securities issued by companies or governments to raise money from investors for a specific period of time with a specific payment date. During this period, the sukuk usually distributes a fixed or variable profit rate periodically. At the end of the sukuk term, which is known as the maturity date, the sukuk issuer pays the principal (the value of the sukuk) collected from the investors.

The Issuer
Middle East Healthcare Company (“Saudi German Health”)
Sukuk Status
Senior Unsecured Sukuk
Sukuk Structure
Mudaraba / Murabaha
The Currency
Saudi Riyal
Aggregate Nominal Amount
Up to SAR 1.0 billion
Maturity
5 years
Annual profit rate
7.20% Annually 
The minimum value of subscription
5,000 SR
The nominal value per Sukuk
1,000 SR
Periodic distribution of profits
The profits will be paid on a Quarterly basis
Offering Start Date
12/02/2024G
Listing
The Sukuk will be listed and traded in Tadawul.
Registrar
Securities Depository Center Company (“Edaa”)
Financial Adviser, Sole Arranger and Dealer
Al Rajhi Capital
Receiving Entities
Al Rajhi Bank
Key Information about Sukuk
The Issuer Middle East Healthcare Co. (Saudi German Health)
Sukuk Issuance Senior Unsecured Sukuk
Sukuk Structure Mudaraba / Murabaha
The Currency Mudaraba
Tenor Saudi Riyal
Maturity Perpetual
Annual profit rate After 5 years
The minimum value of subscription 5000 SR
The nominal value per Sukuk 1,000 SR
Periodic distribution of profits The profits will be paid on a Quarterly basis
The subscription date 12/02/2024
Listing The Sukuk will be listed and traded in Tadawul.
Registrar Securities Depository Center Company (“Edaa”)
Receiving Entities Al Rajhi Bank

FAQs



What are Sukuk?
Sukuk are Islamic Sharia-compliant securities issued by companies or governments to raise money from investors for a specific period of time with a specific payment date. During this period, the sukuk usually distributes a fixed or variable profit rate periodically. At the end of the sukuk term, which is known as the maturity date, the sukuk issuer pays the principal (the value of the sukuk) collected from the investors
 
What are the advantages of Sukuk?

 

  • Fixed/Floating Income: Sukuks offer a regular income stream to investors, either in the form of fixed or floating income. This provides stability and predictability in terms of returns
  • Lower Volatility: Compared to stocks, the value of sukuks tends to be less volatile. This can be attributed to the nature of sukuk investments, which often involve underlying assets or cash flows that provide stability to the investment.
  • Capital Recovery Priority: In the event of a company's liquidation, sukuk holders typically have priority in recovering their capital compared to shareholders. This gives sukuk investors a level of protection in terms of capital preservation.
  • Other Advantages: Sukuks also come with various other advantages, such as diversification opportunities, access to a wider range of investment options, and compliance with Islamic principles, which attract a specific segment of investors.
 
Where will the proceeds of the issuance of the Sukuk be directed to?

These amounts will be used by the issuer to refinance its existing debt, and for general corporate purposes.

 
What are the categories that are entitled to subscribe to the Sukuk?
All categories are entitled to subscribe to the Sukuk
 
Can dependents subscribe?
Yes, individuals can subscribe for their dependents
 
Will Sukuk Listed in Tadawul?
Yes, the Sukuk will be listed in Tadawul, and they can be traded in financial market by individual and corporate investors.
 

Keep up with the latest updates from Al Rajhi Capital.

Asset Management Go to top