Almarai Co. has received shareholder approval for its planned Islamic bond sale, the diary firm said in a statement Sunday. The approval was obtained at an extraordinary general assembly meeting Saturday, the bourse statement said. Last month, Almarai had said it was planning a sukuk issue and was seeking shareholder approval. Several Gulf-based firms have lined up to issue sukuk in the coming months lured by investor appetite and potentially cheaper costs than the conventional stream. No timeframe or further details of the bond issuance were given. The company has plans to invest SR4 billion ($1.1 billion) in the poultry sector. Almarai shares are down 18 percent year-to-date after ending 35 percent higher in the previous year. Almarai is an integrated consumer food companies in the Middle East. The company, along with its subsidiaries, manufactures, distributes, and sells dairy, fruit juices and related food products under the Almarai brand.
