Bulletin: Ittihad International Investment LLC's Sukuk Add-On Is Largely Neutral To Its Debt Metrics

This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) July 12, 2024--S&P Global Ratings today said that Ittihad International Investment LLC's $100 million tap to its existing $350 million sukuk (issued in November 2023 through Ittihad International Ltd.) will not significantly alter its debt metrics. We expect the transaction will be neutral to leverage as Ittihad (B+/Stable/--) plans to use proceeds from the issuance to repay outstanding term loans and short-term borrowings. We believe the transaction helps simplify Ittihad's capital structure and lengthens its debt maturity profile, as the sukuks will mature in 2028. We also believe the add-on strengthens Ittihad?s liquidity as it reduces its short-term debt. That said, under our base case, we expect a

...July 12, 2024 This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) July 12, 2024--S&P Global Ratings today said that Ittihad International Investment LLC's $100 million tap to its existing $350 million sukuk (issued in November 2023 through Ittihad International Ltd.) will not significantly alter its debt metrics. We expect the transaction will be neutral to leverage as Ittihad (B+/Stable/--) plans to use proceeds from the issuance to repay outstanding term loans and short-term borrowings. We believe the transaction helps simplify Ittihad's capital structure and lengthens its debt maturity profile, as the sukuks will mature in 2028. We also believe the add-on strengthens Ittihad's liquidity as it reduces its short-term debt. That said, under our base case, we expect a modest increase in Ittihad's interest expense as the sukuks carry a higher interest rate. Ittihad is a multi-industry private holding group with a diversified investment portfolio that is present...

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