Market Authority Approves Sinom Centres’ Plan for Up to 3.75 Billion Riyal Islamic Bond Offering
RIYADH – The Market Authority has granted approval for Arab Centers Company – Sinom Centre to proceed wiht the issuance and launch of islamic Sharia-compliant financial instruments valued at up to 3.75 billion riyals,the authority announced today. The approval, valid for six months from the date of the Commission’s Council decision, is contingent upon the completion of the initial issuance of debt instruments within that timeframe.
The Market Authority emphasized that investor caution is paramount. “The subscription decision without seeing the release bulletin and studying its content may involve high risks,” a spokesperson stated. Investors are urged to thoroughly review the release bulletin, which details information regarding the source, deductions, and associated risk factors, to assess the viability of investing in the offering. Consultation with a licensed financial advisor is recommended if the bulletin’s contents are unclear.
The authority clarified that its approval signifies adherence to regulatory requirements within the financial market system and its executive regulations, but should not be interpreted as an endorsement of the investment’s feasibility or the underlying source.
According to data presented to shareholders, an unusual general assembly of arab Centers Company – Sinom Centre approved the delegation to issue these instruments last March.The issuance may occur through local or international special offerings, self-reliant sukuk issuances, or the establishment of a comprehensive instrument program, possibly encompassing multiple tranches. The Board of Directors retains discretion to determine the currency equivalent of the 3.75 billion riyal amount.
