Summit Technologies for Computers and Commercial Systems announced its intention to issue Saudi Riyal-denominated Murabaha Sukuk as part of its dedicated Murabaha Sukuk program, in a strategic move aimed at strengthening its financial position. This announcement reflects the company's commitment to diversifying its funding sources to support its operational activities and future projects.
Offer details and organizing body
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company revealed that it has appointed Afaq Financial Company as the sole arranger for this issuance. Afaq Financial will handle all tasks related to the creation, issuance, and offering of the sukuk, leveraging its license from the Capital Market Authority that authorizes it to offer and invest in debt instruments.
The company clarified that the total value of the offering is SAR 10 million. To ensure flexible financing, the offering will be conducted in 20 installments, with the first installment valued at SAR 500,000. The offering will be conducted entirely digitally through the Afaq Financial Company website, facilitating the subscription process for qualified investors.
Context of the debt instruments market in the Kingdom
This offering comes at a time when the Saudi Arabian debt market is experiencing significant growth, driven by regulatory measures implemented by the Capital Market Authority to encourage companies, particularly those listed on the parallel market (Nomu), to issue sukuk as an effective financing tool. Murabaha sukuk are among the most popular and widely accepted Islamic financial instruments, offering attractive returns to investors while adhering to Sharia principles, making them a preferred option in the Saudi market.
Economic importance and its alignment with the vision
Summit Technologies' move towards issuing sukuk aligns with the objectives of the Financial Sector Development Program, one of the programs under Saudi Vision 2030, which aims to deepen the debt market and diversify available investment products. The recourse of technology and commercial companies to debt markets is a sign of a mature investment environment, as it allows them to obtain the necessary liquidity for expansion without resorting to asset liquidation or traditional bank loans.
Presentation objectives and expected impact
The company stated that the primary objective of the proceeds from this offering is to support its existing and future projects. This funding is expected to accelerate the execution of the company's contracts and technology projects, positively impacting its financial statements and enhancing its competitiveness in the rapidly evolving computer and business systems sector in the region.
