Al Kathiri Holding Co. announces the Coupon Return for the Series One of the Sukuk Issuance Programme through Sukuk Al Kathiri at 8.50% per annum fixed rate paid semi-annual

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Announcement DetailFollowing on the Company’s announcement published on Tadawul website on 16/08/1444H (Corresponding to 03/08/2023G), regarding the Offering Period for the Series One of the Sukuk Issuance Programme through Sukuk Al Kathiri, the Company announce that the Coupon Rate has been set at 8.50% per annum fixed rate to be paid on semi-annual basis.The Coupon Rate has been determined based on the average of the bid and offer yield quoted on Tadawul as on the close of 03/08/2023 for Saudi Government SAR Sukuk 2021-01-07 (Tadawul Code 5306; ISIN SA158G0IIT39; Coupon 1.97%; Maturity 21/01/2028) that will mature in 5 years (“Fixed Rate Benchmark”) in addition to a Credit Spread.The Sukuk return of 8.50% is based on the Fixed Rate Benchmark of 4.28% + Credit Spread of 4.22% (422 bps)Summary on the Offer details are as follow:Type of Offering: Public OfferingIssuer: Sukuk Al Kathiri (Special Purpose Entity)Sponsor: Al Kathiri Holding CompanyRating of Sponsor: SIMAH Rating Agency (TASSNIEF): “BBB-” Stable outlookStatus of Sukuk: Senior/unsubordinated, UnsecuredNumber of Sukuk Offered: 100,000 SakSize of Issue: SAR 100,000,000Offer Price: SAR 1,000 per SakReturn: 8.50% per annum, fixed rate paid semi-annualMaturity: Five (5) Years from Settlement DateMinimum Subscription: Five (5) Sukuk, with Par value of SAR 5,0000Offer Start Date: 12/03/2023Offer End Date: 23/03/2023Arranger: AlKhair Capital Saudi ArabiaReceiving Entities: Riyad Bank, ANB, Dinar InvestmentAdditional Information:Institutional investors seeking to purchase the Sukuk will be required to submit a duly completed form to the relevant arranger(s).Retail investors will be required to submit a duly completed form to the receiving agents through the available channels, including through phone banking, or the ATM machines of the receiving agents.The receiving agents are Riyad Bank, Arab National Bank (ANB) and Dinar Investments.The purchase of the Sukuk by investors is subject to satisfying the terms and conditions set out in the investor application form and the Base Prospectus dated 02/03/1444H (corresponding to 28/09/2022G) (the “Base Prospectus”).For further details about the subscription in the Sukuk, please refer to the Base Prospectus.Al Kathiri Holding Company stresses the importance of reviewing(i) the Base Prospectus,(ii) Al Kathiri Holding Company’s interim consolidated financial statements (unaudited) as at and for the nine-month period ended 30 September 2022 (the “Interim Financial Statements”), and(iii) The following website: 02/03/1444H (Corresponding to 28/09/2022G) The Capital Market Authority issued its approval on the registration and the public offering of Debt-Based Recourse Debt Instruments Programme of the Special Purpose Entity Sukuk Al Kathiri.On 24/02/1444H (Corresponding to 20/09/2022G) Tadawul issued its approval for listing debt instruments of Sukuk Al Kathiri on the Main Market.Link to the Prospectus: