Banque Saudi Fransi eyes sukuk
Dubai, May 15, 2012
Banque Saudi Fransi plans to issue a five-year benchmark-sized sukuk, arranging banks said yesterday, after the lender completed investor meetings last week.
An issue would be the Saudi bank's first sukuk under a recently-established $2 billion programme.
Initial guidance for the sukuk was at 200 basis points over midswaps. Benchmark is usually understood to be at least $500 million.
Market sources expect healthy demand for the deal, propped up by a strong regional bid, despite the euro zone uncertainty which is currently weighing on global markets.
"(Pricing) is better than rumoured last week but still relatively tight versus peers," said a regional trader, adding earlier market chatter had indicated guidance in late 100s over midswaps area.-Reuters