Linklaters has advised Middle East Healthcare Company (publicly known as Saudi German Health) on the establishment of its SAR 1.5bn (approximately US$400m) public sukuk issuance programme. The sukuk under the programme will be admitted to trading on the Saudi Exchange (Tadawul).
The offer of the first tranche under the programme, in the total value of SAR 1bn (approximately US$266m), has been completed and was fully subscribed by investors.
This transaction is notable as the first public sukuk programme by a Saudi non-industrial corporate under Saudi Arabia’s new public offer rules. Compliance with rigorous disclosure rules for public offers allows this programme to benefit from a broader investor base, leveraging the Saudi retail investor market.
The programme utilises a hybrid mudaraba-murabaha structure under which a portion of the sukuk proceeds will be applied towards profit generating murabaha agreements and the remainder of the proceeds will be invested in the issuer’s business under a mudaraba agreement.
The Linklaters team was led by partners Dalia Nammari and Amro Bakhaidar, supported by a cross-jurisdictional team that included managing associates Vladislav Spirin and Mohammad Almania.
Linklaters’ Dubai-based capital markets partner Dalia Nammari commented:
“We are delighted to have supported our client in this pioneering public sukuk transaction by leveraging our on-the-ground expertise and our broader regional network to deliver an innovative Sharia-compliant solution. This transaction paves the way for future public issuances by Saudi institutions, leveraging the expanding Saudi retail investor market to access a wider investor base.”
