Almarai USD500m 4.311% Mar 24

  • By Francesca Young
  • 28 Feb 2019
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Rating:Baa3/BBB-

Amount:$500m Reg S only 

Maturity:5 March, 2024

Issue/reoffer price:100

Coupon:4.311%

Spread at reoffer:mid-swaps plus 180bp; 184.7bp over the 2.5% January 2024 US Treasury

Launch date:Tuesday, February 26

Payment date:March 5

Joint books:First Abu Dhabi Bank, HSBC, Gulf International Bank, JP Morgan, Standard Chartered


Borrower’s comment: 

Final books peaked at around $5.45bn with more than 280 orders. It’s the first deal from a Saudi investment grade private corporate issuer, though there have been sub-investment grade issuers before. 

They could have taken more, but a $500m deal is all they wanted from the start and they communicated that to the market. They identified the need for the funding for refinancing purposes.

The company sees using the bond markets as a natural evolution of the company’s funding. It is committed to the sukuk market going forward.

The deal was well received internationally. Investors mostly looked at other Saudi corporates such as Saudi Electric Company and SABIC as comparable issuers, as well as other similarly rated corporates from the broader GCC such as Majid Al Futtaim, Emaar Malls and Emaar Properties.

Guidance for the sukuk was put out at the start of the day in Saudi Arabia at 225bp over mid-swaps and books had reached $2.5bn by the time of the London open. Guidance was later updated to 190bp-200bp over mid-swaps before pricing at 180bp over.


Geographical distribution

Kingdom of Saudi Arabia 6%

GCC (ex-KSA) 33%

Europe 36%

Asia 23%

US Offshore 2%


Distribution by investor type

Funds 60%

Banks 32%

Insurance/pension funds 4%

Central banks/agencies/corporates 4%


Market appraisal: 

“…I see this as flat to fair value.”

“…it’s a welcome addition to the landscape but the scarcity value for this kind of paper has driven the pricing tight.”

  • By Francesca Young
  • 28 Feb 2019

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 16.96 84 10.49%
2 Citi 16.47 74 10.18%
3 HSBC 13.06 94 8.08%
4 Standard Chartered Bank 8.51 60 5.26%
5 BNP Paribas 8.28 55 5.12%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Santander 4.35 19 13.01%
2 JPMorgan 3.89 18 11.62%
3 Citi 3.70 18 11.05%
4 Morgan Stanley 2.60 9 7.78%
5 BNP Paribas 2.42 9 7.23%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 6.94 29 14.41%
2 Citi 5.72 20 11.86%
3 HSBC 5.08 24 10.54%
4 Standard Chartered Bank 4.14 19 8.60%
5 Goldman Sachs 2.95 6 6.12%

EMEA M&A Revenue

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 0.20 50 10.55%
2 Goldman Sachs 0.16 37 8.77%
3 Morgan Stanley 0.14 46 7.64%
4 Bank of America Merrill Lynch 0.11 33 6.18%
5 Citi 0.10 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 ING 1.57 13 8.92%
2 Credit Agricole CIB 1.53 7 8.68%
3 MUFG 1.24 5 7.08%
4 Sumitomo Mitsui Financial Group 1.16 8 6.61%
5 UniCredit 1.04 10 5.91%

Bookrunners of India DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 HSBC 1.12 9 17.54%
2 JPMorgan 0.92 8 14.49%
3 Standard Chartered Bank 0.88 8 13.92%
4 Barclays 0.82 7 12.82%
5 MUFG 0.72 6 11.36%