Almarai Co., the Saudi Arabian dairy producer, had told four financial institutiions to assist in the arrangement of a SAR1.7 billion or USD453.3 million Islamic hybrid bond or sukuk. The said announcement was made Wednesday and it had mandated Banque Saudi Fransi's investment banking arm, BNP Paribas, the Saudi Arabian units of HSBC and Standard Chartered Bank to hold investor meetings in the next two weeks. 

Almarai had disseminated the announcement through the Saudi Arabian bourse. 

The announcement also detailed the parameters of the bond issue. The sukuk would have a perpetual maturity, which means the company can account for the proceeds as part of its equity position. This bond issue is the first ever conducted by the dairy production company and it is one of the very first hybrid bond issues that has been conducted by a Saudi corporation.

The offer is part of an overall SAR15.7 billion five year capital fund program. The fund would be denominated in Saudi riyals. The bonds would be sold to sophisticated investors that are residents of the Kingdom of Saudi Arabia.