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Saudi German Sukuk Health

Investment Banking

Sukuk are Islamic Sharia-compliant securities issued by companies or governments to raise money from investors for a specific period of time with a specific payment date. During this period, the sukuk usually distributes a fixed or variable profit rate periodically. At the end of the sukuk term, which is known as the maturity date, the sukuk issuer pays the principal (the value of the sukuk) collected from the investors.

Terms and conditions Prospectus 
The Issuer
Middle East Healthcare Company (“Saudi German Health”)
Sukuk Status
Senior Unsecured Sukuk
Sukuk Structure
Mudaraba / Murabaha
The Currency
Saudi Riyal
Aggregate Nominal Amount
Up to SAR 1.0 billion
Maturity
5 years
Annual profit rate
7.20% Annually 
The minimum value of subscription
5,000 SR
The nominal value per Sukuk
1,000 SR
Periodic distribution of profits
The profits will be paid on a Quarterly basis
Offering Start Date
12/02/2024G
Listing
The Sukuk will be listed and traded in Tadawul.
Registrar
Securities Depository Center Company (“Edaa”)
Financial Adviser, Sole Arranger and Dealer
Al Rajhi Capital
Receiving Entities
Al Rajhi Bank
Key Information about Sukuk
The Issuer Middle East Healthcare Co. (Saudi German Health)
Sukuk Issuance Senior Unsecured Sukuk
Sukuk Structure Mudaraba / Murabaha
The Currency Mudaraba
Tenor Saudi Riyal
Maturity Perpetual
Annual profit rate After 5 years
The minimum value of subscription 5000 SR
The nominal value per Sukuk 1,000 SR
Periodic distribution of profits The profits will be paid on a Quarterly basis
The subscription date 12/02/2024
Listing The Sukuk will be listed and traded in Tadawul.
Registrar Securities Depository Center Company (“Edaa”)
Receiving Entities Al Rajhi Bank
 

FAQs



What are Sukuk?
Sukuk are Islamic Sharia-compliant securities issued by companies or governments to raise money from investors for a specific period of time with a specific payment date. During this period, the sukuk usually distributes a fixed or variable profit rate periodically. At the end of the sukuk term, which is known as the maturity date, the sukuk issuer pays the principal (the value of the sukuk) collected from the investors
 
What are the advantages of Sukuk?

 

  • Fixed/Floating Income: Sukuks offer a regular income stream to investors, either in the form of fixed or floating income. This provides stability and predictability in terms of returns
  • Lower Volatility: Compared to stocks, the value of sukuks tends to be less volatile. This can be attributed to the nature of sukuk investments, which often involve underlying assets or cash flows that provide stability to the investment.
  • Capital Recovery Priority: In the event of a company's liquidation, sukuk holders typically have priority in recovering their capital compared to shareholders. This gives sukuk investors a level of protection in terms of capital preservation.
  • Other Advantages: Sukuks also come with various other advantages, such as diversification opportunities, access to a wider range of investment options, and compliance with Islamic principles, which attract a specific segment of investors.
 
Where will the proceeds of the issuance of the Sukuk be directed to?

These amounts will be used by the issuer to refinance its existing debt, and for general corporate purposes.

 
What are the categories that are entitled to subscribe to the Sukuk?
All categories are entitled to subscribe to the Sukuk
 
Can dependents subscribe?
Yes, individuals can subscribe for their dependents
 
Will Sukuk Listed in Tadawul?
Yes, the Sukuk will be listed in Tadawul, and they can be traded in financial market by individual and corporate investors.
 
Disclaimer

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART TO THE UNITED STATES OR ANY OTHER JURISDICTION WHERE IT WOULD BE UNLAWFUL TO DO SO


Al Rajhi Capital (the "Lead Manager") is a “capital market institution” for the purposes of the Rules on the Offer of Securities Regulations and is licensed by the Capital Market Authority to undertake such offering. The Lead Manager has been engaged by the Issuer in relation to the Sukuk and is not acting for any other person or institution in relation to the Sukuk.


No reliance may be placed for any purposes whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. This announcement should not be treated as giving tax, legal, investment, Shariah or other specialist advice. The information in this announcement has been prepared for discussion purposes only and is subject to updating, completion, revision and amendment and such information may change materially. Neither the Issuer nor the Lead Manager is under any obligation to update or keep current the information contained herein, and any opinions expressed herein are subject to change without notice. Accordingly, no representation or warranty, express or implied, is or will be made by the Issuer and Lead Manager, their respective advisors or any such persons’ directors, officers, employees agents or affiliates or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement, and any reliance you place on them will be at your sole risk. Without prejudice to the foregoing, the Issuer and Lead Manager, their respective advisors and any such persons’ directors, officers, employees, agents or affiliates do not and will not accept any liability whatsoever, in negligence or otherwise, for any loss howsoever arising, directly or indirectly, from use of this announcement or its contents or otherwise arising in connection therewith. The Capital Market Authority does not make any representation as to the accuracy or completeness of this announcement, and each expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this announcement. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this announcement you should consult an authorized financial adviser. Prospective purchasers should not purchase any securities except on the basis of the information contained in the final prospectus.


A RATING IS NOT A RECOMMENDATION TO BUY, SELL OR HOLD SECURITIES AND MAY BE SUBJECT TO REVISION, SUSPENSION OR WITHDRAWAL AT ANY TIME BY THE ASSIGNING RATING ORGANISATION. SIMILAR RATINGS FOR DIFFERENT TYPES OF ISSUERS AND ON DIFFERENT TYPES OF SECURITIES DO NOT NECESSARILY MEAN THE SAME THING. THE SIGNIFICANCE OF EACH RATING SHOULD BE ANALYSED INDEPENDENTLY FROM ANY OTHER RATING.


The Sukuk are complex financial instruments and are of high risk and are not a suitable or appropriate investment for all investors. In some jurisdictions, regulatory authorities have adopted or published laws, regulations or guidance with respect to the offer or sale of securities such as the Sukuk to retail investors. There are risks inherent in the holding of the Sukuk, including the risks in relation to their subordination and the circumstances in which holders of the Sukuk may suffer loss as a result of holding the Sukuk.


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