Dar Almarkabah announces intention to issue sukuks denominated in Saudi riyals

Dar Almarkabah for Renting Cars Co. announced on Sunday the intention to issue Sukuk denominated in Saudi Riyals through an offering by Afaq Financial Company, licensed for arranging and issuing debt instruments and also authorized to offer and invest in them.

The company explained Today on Tadawul that the program value has been set at SAR 30 million, and it will be offered in multiple tranches, to be determined later based on market conditions at that time.

Added that that due to studying the company’s options for direct bank financing and issuing Sukuk, the option of issuing Sukuk was chosen due to its superior benefits for the company. This option allows the company to defer direct repayment and initiate repayment after 6 months, providing the company with payment flexibility and maximizing the optimal utilization of funds. It supports the company’s operational activities, regional expansion, and fleet expansion, leading to higher revenues before commencing the repayment plan. On the other hand, direct financing would require installment deductions and profit margins from the first month of receiving the financing.

According to the study conducted by the company to request this financing, it is expected to have a financial impact of twenty million over the next three years.

– The company emphasizes the importance of carefully and fully reading the prospectus before making any investment decisions related to subscribing to the Sukuk.

– This announcement does not constitute an invitation or offer to purchase, own, or subscribe to any securities. The company will announce any other material developments in due course in accordance with the relevant regulations and laws.