Red Sea International intends to issue SAR-denominated Sukuk

RED SEA
4230 1.08% 23.50 0.25

Riyadh – Mubasher: Red Sea International Company plans to establish a Saudi Riyal-denominated Sukuk issuance program totaling SAR 300 million.

The initiative aims at optimizing the company’s capital structure and supporting its strategic growth objectives, according to a bourse filing.

Sukuk Capital will be the sole lead arranger of the offering, which was determined during the board of directors’ meeting on 20 May 2026.

In this role, Sukuk Capital will oversee the structuring and offering of the sukuk, ensuring that the process meets regulatory standards and aligns with market conditions.

The proposed issuance of Sharia-compliant debt instruments is designed to provide the company with a flexible financing framework to address its evolving capital needs.

Meanwhile, the Sukuk program will be executed in strict accordance with the Rules on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority (CMA).

Red Sea International noted that the specific terms and conditions of the offering, including profit rates and maturity dates, will be determined and detailed in the forthcoming offering documents.

Management stated that the proceeds will be utilized to support the company’s ongoing operational requirements and provide necessary funding for its pipeline of future projects.

By tapping into the local debt market, Red Sea International aims to enhance the efficiency of its financing structure and diversify its sources of capital. This strategic diversification is intended to reduce reliance on traditional funding methods and contribute to the creation of sustainable value for the company’s shareholders.

Earlier in 2026, the listed company announced its plan to increase the capital by 58% through rights issue.

Source: Mubasher Source: {{details.article.source}}