Impact46, a prominent Saudi-based asset manager, has announced the successful completion and allocation of the first public Sukuk issuance for Bidaya Finance. This transaction carries an aggregate value of SAR 200 million and features a fixed annual profit rate of 7.1%. The issuance marks a historic milestone as the first publicly listed senior Sukuk issued by a private company under the new regulatory framework established by the Capital Market Authority (CMA).
Strong Investor Demand and Strategic Allocation
Despite prevailing market conditions, the subscription period saw robust demand that exceeded the targeted issuance size. Impact46, acting as the Lead Arranger and Co-Financial Advisor, oversaw an allocation process that prioritized both institutional and retail participants. Institutional investors received 100% of their subscriptions, while individual investors were allocated no less than 75% of their requested amounts. Excess funds are currently being processed for refund to subscribers through the relevant receiving entities.
Transaction Structure and Market Listing
The SAR 200 million issuance is characterized by several key financial terms:
- Profit Rate: A fixed annual return of 7.1%.
- Distributions: Profit payments will be distributed to investors on a quarterly basis.
- Maturity: The Sukuk has a three-year term from the date of issuance.
- Listing: The Sukuk is set to be listed and traded on the Saudi Exchange (Tadawul) following the completion of standard regulatory procedures.
This issuance represents the third Sukuk program for Bidaya Finance, but its first to be publicly listed and traded, signaling deepening maturity in the Saudi private sector’s access to capital markets.
About Impact46
Impact46 is an authorized asset management and advisory firm based in Riyadh, Saudi Arabia. The firm specializes in alternative investment opportunities, including venture capital and private equity, and plays a significant role in arranging debt instruments for private enterprises. By acting as a Lead Arranger for landmark transactions like the Bidaya Finance Sukuk, Impact46 continues to support the development of the Saudi financial sector in alignment with the Kingdom’s evolving regulatory landscape.
Source: Impact46
