Saudi Arabian mall operator Arabian Centres is planning an inaugural sale of US dollar-denominated sukuk, or Islamic bonds, sources familiar with the matter told Reuters.
The company, which went public earlier this year, is looking to raise $500 million from the issue, said the three sources.
Arabian Centres did not respond to a request for comment, Reuters said.
Goldman and HSBC are set to lead the transaction which could take place as soon as this year, the sources said.
Arabian Centres’ 2.8 billion riyals ($747 million) initial public offering (IPO) in May was Saudi Arabia’s third biggest since Riyadh-based National Commercial Bank raised $6 billion in 2014.
The firm plans to expand its operations to 27 malls within four years and is building cinemas after a decades-long ban on movie theaters was lifted last year.
The planned debt raising follows a busy year for debt markets in the Gulf Cooperation Council (GCC), with borrowers raising cheap debt from global investors looking for high yields in a low interest rate environment.
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- Sukuk issuance remains steady for first nine months of 2019: Fitch
- Bahrain starts marketing dollar sukuk and conventional bonds
- Islamic Development Bank hires banks for five-year dollar sukuk