Sukuks, Savola and Milk

Saudi food conglomerate Savola is issuing an Islamic bond (sukuk) with a maturity of  seven years.

Savola is the largest sugar refiner in the Middle East but also has a 36.5 percent stake in Saudi dairy producer Almarai.

Bloomberg Business Week recently ran a good profile on Almarai  and its founder and major shareholder Prince Sultan bin Mohammed bin Saud al-Kabeer. The story pointed to the importance of feedstock imports from Argentina.

It seems that the expansion plans of the Saudi dairy industry are backed up by financial prowess.

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