Dar Almarkabah plans SAR-denominated sukuk issue worth SAR 30 mln

Logo of Dar Almarkabah for Renting Cars Co.

Dar Almarkabah for Renting Cars Co. announced today, Sept. 10, its plans to issue SAR-denominated sukuk at a value of SAR 30 million in multiple tranches, to be determined later based on market conditions at that time.

In a statement to Tadawul, Dar Almarkabah said it mandated Afaq Financial Co. as the lead arranger for the purpose of establishing, issuing, and offering the sukuk.

The company decided to issue sukuk after studying the options for direct bank financing and concluding sukuk ensured superior benefits.

This allows the company to defer direct repayment and initiate repayment after six months, providing payment flexibility and maximizing the optimal utilization of funds.

It supports the company's operational activities, along with regional 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, it is expected to have a financial impact of SAR 20 million over the next three years, the statement added.

The company does not require the approval of the Capital Market Authority (CMA) to register and offer the sukuk under the program.

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