Binladin completes $267m sukuk sale
Riyadh, July 12, 2013
Saudi Binladin Group, one of the largest construction firms in the kingdom, has completed a SR1 billion ($266.7 million) Islamic bond sale, two bankers familiar with the matter said.
The transaction, structured as a sukuk al-murabaha, has a one-year lifespan and pays a profit rate of 2.5 percent, the sources said, speaking on condition of anonymity as they weren't authorised to talk to the press.
A murabaha is a sharia-compliant cost-plus-profit arrangement.
Binladin Group was not immediately available for comment.
Sources said last month that BNP Paribas and the investment banking arm of Gulf International Bank were marketing a deal for Binladin Group to Saudi investors, with proceeds to be used to fund its projects.
The Islamic bond was sold to a wide range of investor types including financial institutions, asset managers and insurance funds among others, one of the bankers said.
The sukuk sale is the fourth carrying a 364-day tenor. The last, a SR1 billion offering, was completed in August, with previous deals in July 2010 and July 2011.
Binladin Group has already completed one, longer-dated local currency sukuk in 2013. It priced the SR1.3 billion Islamic bond with a 2.5-year lifespan, arranged by the investment banking arm of Banque Saudi Fransi, in April.-Reuters