Arabian Drilling Company successfully execute its first capital market transactions

Arabian Drilling Company, a major drilling company in Saudi Arabia, has successfully raised SAR 2.0bn (c. USD 533m) from the local debt capital market. The transaction attracted massive demand from various investors group. Final order booked reached more than SAR 5.5bn which allowed the company to increase the issuance size from original plan of less than SAR 1.6bn to SAR 2.0bn. The demand also allowed the Sukuk pricing to land @ Sibor+1.60% which was the low end of price guidance for 5 years tenor. HSBC Saudi Arabia acted as Lead Coordinator of the transaction and the company appointed HSBC Saudi and Fransi Capital as the joint lead managers for the issuance. Riyad Capital was appointed as the Sukuk holders agent and payment administrator

Mr. Ali Alghamdi, the Managing Director Administration of Arabian Drilling Company (ADC) commented “ADC has an established strong name in the oil industry for many years. The Sukuk issuance was mainly designed to expand the awareness of ADC impressive operational and financial track record to the wider market. The current conditions in the energy market is ideal for growth opportunities and such Sukuk financing will allow ADC to continue its journey to comfort its position as a leading national and future regional player in its field”

Mr. Mohammed Albensaleh, Head of Debt Capital Markets in HSBC Saudi commented “We are very proud to be working with a national champion like ADC in its debut capital market transaction. The company has unmatched track record financially and operationally. Those factors were well positioned to investors which resulted in attracting one of the highest demand for local corporate issuances”