Latest news with #SAR14
Zawya
21-04-2025
- Business
- Zawya
Bad debt securitisations to support Saudi debt capital market: Fitch
Potential bad debt securitization will support Saudi Arabian banks' liquidity profiles and capital ratios and develop the debt capital market, according to Fitch Ratings. Impaired loans, known as stage 3 loans under IFRS 9, fell to SAR 41 billion ($10.93 billion) in 2024, 1.4% of total loans, down from SAR 49 billion at the end of 2022. The drop was due to loan write-offs and reduced generation of problem loans on the back of the healthy operating environment. New impaired loans were about SAR10 billion in 2024 compared to SAR14 billion in 2023 and SAR 16 billion in 2022. Banks are also likely to opt for securitising written-off exposures. However, the par value of the associated bonds would be low as most of the exposures are deeply impaired. Banks wrote off SAR 43 billion of debt in 2022-2024. Domestic lenders are also expected to start securitizing more residential mortgage loans. This will have a big impact on funding diversification and the development of the debt capital markets, as the combined mortgage book of Saudi banks is about SAR 700 billion. However, the banking sector is expected to see a credit growth of 12-14% in 2025, as lending will outpace deposits. This will widen the deposit gap, which reached SAR 300 billion in 2024, Fitch said. 'Even if all bad loans are securitised, the gap will not shrink much,' it added. (Editing by Seban Scaria
Trade Arabia
19-02-2025
- Business
- Trade Arabia
Takatuf turns cornerstone investor for Umm Al Qura IPO
Saudi-based Umm Al Qura for Development and Construction today (February 18) announced it has issued a supplementary prospectus and signed a binding investment undertaking agreement for its Initial Public Offering (IPO) with Takatuf Holding Group Company - a limited liability company wholly owned by Abdullah Sulaiman Al Rajhi Holding Company (ASAQ) - as its cornerstone investor. As the cornerstone investor, Takatuf has committed to a subscription of 8.87 million shares, representing 6.8% of the offer shares, it stated. A specialist in financial investments, Takatuf is also involved in the development of large-scale, multi-use projects in the kingdom through its subsidiaries. Takatuf Holding Group is a key investor in the Saudi markets. According to Umm Al Qura, the Cornerstone Commitment represents approximately 0.62% of the company's share capital after the Offering. A key Saudi-based group, Umm Al Qura was established in 2012 for undertaking the development of King Abdulaziz Road in Makkah which originally contained six unplanned settlements neighbourhoods; the project site area is known as Masar Destination. The Saudi group had recently announced the price range for its IPO as well as the commencement of the institutional book-building period for participating parties. The company had set SAR14 to 15 per share price range for the Offering. On December 24 last year, the Capital Market Authority had given the go-ahead to Umm Al Qura for the registration of its share capital and the offering of 131 million shares. Speaking on the occasion, CEO Yasser Abdulaziz Abu Ateek said: "We are pleased to welcome Takatuf Holding Group Company, a wholly owned subsidiary of Abdullah Sulaiman Al Rajhi Holding Company, as a cornerstone investor for our IPO." "This step reaffirms the attractiveness of the investment opportunities Umm Al Qura offers and its ability to attract investors. It also reflects Takatuf's confidence in the company's business model and growth strategy. We are delighted to collaborate with such a distinguished partner to create sustainable value for our shareholders," he added. Umm Al Qura said the institutional book building period will end on February 20 and the final offering price will be determined at the end of the book-building process. For the key listing, Umm Al Qura has signed up Albilad Capital as joint financial advisor, lead manager, bookrunner and underwriter; GIB Capital and AlRajhi Capital as joint fnancial advisors, bookrunners and underwriters as well as Alinma Invest as joint bookrunner and underwriter.
Trade Arabia
16-02-2025
- Business
- Trade Arabia
Saudi developer Umm Al Qura sets price range for IPO
Umm Al Qura for Development and Construction today (February 16) announced the price range for its upcoming initial public offering (IPO) as well as the commencement of the institutional book-building period for participating parties. A key Saudi-based group, Umm Al Qura was established in 2012 for undertaking the development of King Abdulaziz Road in Makkah which originally contained six unplanned settlements neighbourhoods; the project site area is known as Masar Destination. Its current majority shareholders comprise state-owned entities and Saudi private sector including the Saudi sovereign wealth fund PIF, the General Organization for Social Insurance (GOSI) and Dallah Al Baraka Holding. Masar is one of the largest redevelopment projects in the region, located directly on Makkah's western border. It stretches for more than 3.5km from the 3rd Ring Road intersection with Prince Mohammed bin Salman bin Abdulaziz Road (formerly Umm Alqura Road) to 550m away from Al Haram's King Fahad Gate, said the company in a statement. It consists of 205 investment plots, with a total area of approximately 641,000 sq m and a total gross floor area (GFA) of 5.7 million sq m, comprising various uses, which the company seeks to transform into a global multi-use destination to serve the residents and visitors of Makkah, it stated. Umm Al Qura said the institutional book-building period began today and will run until February 20. The company has set SAR14 to 15 per share price range for the Offering. On December 24 last year, the Capital Market Authority gave the go-ahead to Umm Al Qura for the registration of its share capital and the offering of 131 million shares. This accounts for 9.09% of the company's stake post the capital increase, by way of the issuance of new shares. The company also received the Saudi Exchange's conditional approval on December 8 to list on the Main Market of the Saudi Exchange. The Saudi developer said the net proceeds of the IPO will be utilised to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures. In addition to this, it will also be used for other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing. For the key listing, Umm Al Qura has signed up Albilad Capital as joint financial advisor, lead manager, bookrunner and underwriter; GIB Capital and AlRajhi Capital as joint fnancial advisors, bookrunners and underwriters as well as Alinma Invest as joint bookrunner and underwriter.
Arabian Business
16-02-2025
- Business
- Arabian Business
Saudi Arabia's Diriyah set on track for 2027 infrastructure completion, says CEO: Report
The Diriyah Gate Development Authority's Group CEO Jerry Inzerillo has revealed that Diriyah's infrastructure will be completed by 2027, including 60,000 underground parking spaces and pedestrian zones. Speaking at the PIF Private Sector Forum in Riyadh, Inzerillo detailed plans for Diriyah Square, which currently employs 83 tower cranes. 'The commercial and cultural district, currently under construction, features 83 tower cranes operating at full capacity. Once complete, it will include a 1.9-kilometer boulevard, our own version of the Champs-Élysées, housing Saudi Arabia's contemporary art museum, a 20,000-seat arena, an exhibition center, an opera house, and the largest Apple store in the world,' the Saudi Gazette reported, citing Inzerillo. The $64 billion transformation project has 40,000 workers on-site daily. The UNESCO World Heritage Site has attracted three million visitors, with expectations of 27 million by 2030. Inzerillo reported strong financial performance, with residential sales reaching between SAR13 billion and SAR14 billion in deposits. 'These are not hypothetical sales; these are deposited sales,' he said, adding that properties branded by Ritz-Carlton, Raffles, and Oberoi have sold out, while five of 37 Aman Villas were purchased within three days of release. The development has drawn interest from international investors, including Italian and Colombian developers, alongside Qatari and Emirati buyers, he said. Diriyah's development aligns with Saudi Arabia's Vision 2030 and coincides with the kingdom's hosting of major events, including Expo 2030, the 2027 Asian Football Games, and the 2034 FIFA World Cup. 'Spanning 14.2 million square metres—equivalent to Beverly Hills, California—it will feature 40 luxury hotels, 30,000 residences, and an extensive range of retail and dining options. Adjacent to Diriyah, Wadi Safar will host high-end resorts from Aman, Six Senses, and Chetty, along with a 27-hole Greg Norman-designed golf course,' Inzerillo said. Inzerillo also hinted at a potential future public listing of Diriyah, following other Public Investment Fund-backed projects. 'With strong return on investment (ROI) and increasing interest from both local and international investors, Diriyah is well-positioned for long-term financial sustainability,' he said.
