Thursday 26 April 2018

HSBC leads SBG’s $187m sukuk

Jeddah, July 17, 2010

HSBC Saudi Arabia was the sole lead manager and bookrunner for a SR700million ($187 million) Sukuk Al-Murabaha issued recently by the Saudi BinLadin Group (SBG), a multinational construction company.

The privately placed sukuk was offered to Saudi sophisticated investors and issued through Saudi BinLadin Sukuk Co.

SABB, HSBC’s local affiliate, acted as the security agent while SABB Securities was the sukuk holder’s agent, payments administrator and inter creditor agent.

The sukuk issuance which was over subscribed by more than 2.5 times was the first short term issuance in Saudi Arabia, a statement said.

It was also the first credit enhanced structure incorporating the sharing of assigned government contract payment and the first issuance to be issued on a zero coupon, discount to maturity basis, the statement added.

“We are extremely gratified with the overwhelming response to this sukuk issuance,” said a statement released by the Saudi BinLadin Group in Jeddah.

“The issue has attracted attention from a wide cross section of qualified investors including corporations, mutual funds, government agencies, insurance companies and individuals.”

“We believe that this strong response to our second sukuk issuance is a reaffirmation of our investor’s faith in SBG and is a testimony to SBG’s position as a leading Saudi Arabian business conglomerate playing a substantive role in Saudi Arabia’s infrastructural growth and development.”

Walid Khoury, CEO of HSBC Saudi Arabia, said: “Having led SBG’s debut sukuk issuance in 2008, we are proud to have brought their second sukuk issuance to the market as well.”

“This sukuk contains several important innovations and provides a well structured short term, domestic investment alternative to investors in Saudi Arabia.”

“It is as such, an important step in the continuing development of the Saudi Arabian debt capital markets. Considering Saudi local market conditions and investors' preferences, the development of commercial paper in Saudi will enable corporate short term funding requirements to diversify away from bank sources,” he added. – TradeArabia News Service

Tags: HSBC | Jeddah | sukuk | SABB | Saudi Binladin |

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