Food and beverages company Almarai has raised SR1.7bn ($450m) through the sale of sukuk (Islamic bonds). The perpetual senior issue, callable after five years, was a private offering to investors based in Saudi Arabia.

BNP Paribas Investment Company KSA, HSBC Saudi Arabia, Saudi Fransi Capital and Standard Chartered Capital acted as joint-lead managers.

The issue is part of the Riyadh-based company’s five-year, SR15.7bn investment programme to expand its abilities in farming, manufacturing, distribution and logistics.

As part of the programme the company is also looking to sell more equity. In June it announced it will be increasing its share capital by 50 per cent to SR6bn, which was approved by its shareholders in September. That will bring its total number of shares to 600 million.

The region’s bond issuance has reached a peak in the first six months of 2013. More than $30bn was raised by issuers from the Middle East and North Africa (Mena), according to UK financial services company Dealogic.