Saudi civil aviation body to issue $4bn sukuk
Riyadh, January 16, 2012
Saudi Arabia's General Authority for Civil Aviation (GACA) is set to issue a 15 billion riyals ($4 billion) ten-year sukuk, its debut Islamic bond offering, a source familiar with the matter told Reuters on Monday.
The transaction will carry a profit rate of 2.5 percent, the source added, who spoke on condition of anonymity.
Investor meetings ahead of the sukuk sale began on January 10, a statement carried by the Saudi Press Agency said at the time.
The sukuk is fully guaranteed by the Saudi Ministry of Finance and will be the first in a series of Islamic bonds from the authority to help fund the 27.1 billion riyals development of King Abdulaziz International Airport in Jeddah.
HSBC Saudi Arabia is the sole lead manager for the offering, having worked with GACA to structure the sukuk programme.
Saudi Arabia is currently implementing multi-billion dollar infrastructure projects and revamping many of its airports to cater for the growing number of passengers.
Traffic at Saudi airports has reached 30 million passengers annually and is expected to double to 60 million over the next 10 years, according to past figures from GACA. - Reuters
More Finance & Capital Market Stories
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade
- Egypt urban annual inflation slows to 9.8pc
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi
- SME funding focus for Abu Dhabi forum
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013