In a strategic move aimed at strengthening its financial position and supporting its ambitious expansion plans, Saudi Logistics Company (SAL) announced its intention to issue Saudi Riyal-denominated sukuk. These sukuk will be offered through a private placement within the Kingdom of Saudi Arabia, with the possibility of including investors outside the Kingdom in the offering, subject to applicable regulations.
According to the official statement issued by the company on the Saudi Stock Exchange (Tadawul) website, SAL has selected JPMorgan Saudi Arabia and AlAhli Capital to act as joint lead managers and bookrunners for this potential offering. This preparatory step paves the way for a series of intensive meetings with a select group of potential investors to discuss the details of the offering and attract the necessary capital.
The objectives of the offering and its alignment with Vision 2030
The company clarified that the proceeds from the sukuk program will be allocated to the company's general corporate purposes. Foremost among these purposes is financing the necessary capital expenditures to support future expansion projects, which aligns directly with the company's long-term financial and strategic objectives. This step is particularly significant given the major economic transformations underway in the Kingdom as part of Vision 2030, which places great emphasis on the logistics sector with the aim of transforming the Kingdom into a global logistics hub connecting three continents.
This funding is expected to contribute to strengthening the infrastructure of “SAL”, enabling it to raise the efficiency of cargo handling and logistics operations at Saudi airports, and keep pace with the increasing demand for air and land freight services, especially with the rapid growth in the e-commerce and national industry sectors.
Credit ratings reflecting financial strength
Concurrently with the announcement of its intention to issue sukuk, SAL revealed that it had received outstanding credit ratings from SIMAH Rating Agency (“Tasneef”), licensed by the Capital Market Authority. The company received a long-term credit rating of “A”, a short-term rating of “T-2”, and an “A” rating for its planned sukuk program, all with a stable outlook.
These ratings carry significant economic implications, reflecting the company's high creditworthiness and low associated risk. They also underscore the strength of SAL's financial position and its exceptional operational capabilities, supported by robust cash flows. The agency's report indicates that the company benefits from an effective governance framework and sound risk management practices, reinforcing investor confidence in its ability to meet its financial obligations and maintain its leading position in the Kingdom's logistics market.
