Riyadh - Mubasher: Takween Advanced Industries Company has officially announced the termination of its Saudi Riyal-denominated local Sukuk program, which was originally authorized for a total value of up to SAR 650 million.

The decision, approved by the company’s Board of Directors on 23 June 2026, follows the successful completion of only a small fraction of the intended financing and a strategic shift in the firm’s capital management approach.

The termination marks the conclusion of a financing initiative that was first disclosed to the Saudi Exchange (Tadawul) on 19 October 2025.

At its inception, the Shariah-compliant program was designed to provide the company with a flexible framework for issuing and offering Islamic bonds in multiple tranches to support its industrial operations and strategic growth objectives.

According to the regulatory filing, Takween Advanced Industries managed to successfully execute one financing tranche during the program's active period.

This single issuance raised 60 million Saudi Riyals and was facilitated through an electronic platform. However, the remaining tranches authorized under the 650 million Saudi Riyal ceiling were never brought to market.

The decision to cease the program was reached following extensive discussions between Takween and Sukuk Capital, the financial entity involved in the program's management.

Both parties agreed to halt further issuances and formally end the arrangement. Consequently, the Board of Directors convened on 23 June 2026, to ratify the termination of the program in its entirety.

Addressing the rationale behind this strategic pivot, Takween Advanced Industries stated that the decision to terminate the program resulted from a comprehensive internal review of available financing alternatives.

The company indicated that its current financial requirements are better served by other funding mechanisms currently available in the market.

This suggests a shift toward more optimized or cost-effective capital structures that align more closely with the company’s immediate liquidity needs and long-term debt profile.

Regarding the financial implications of this development, the company clarified that there are no costs associated with the termination that would necessitate a change in previous financial reporting. Furthermore, the management does not anticipate any material impact on the company’s financial statements as a result of ending the Sukuk program.