Building firm's $100m sukuk a success

Manama, October 20, 2011

The $100 million sukuk for the Building Materials Company has been successfully settled and paid for in full on its maturity date on October 18.

This was announced by Kuwait Finance House (KFH), Liquidity Management Centre, Gulf International Bank, and Standard Bank, who were arrangers and lead managers.

The asset-backed Sukuk Al Musharaka was structured as a Sharia-compliant sinkable security with a five-year term. The sukuk was backed by building material factories, which provided an over-collateralisation and an added security for all sukuk holders.

It offered a semi-annual return of 100 basis points over the US dollar six months LIBOR.

This sukuk was one of the first offerings of a rated corporate sukuk issue that was assigned a rating of A by Capital Intelligence.

'The settlement of a corporate manufacturing sukuk issue that caters to the real estate sector in today's challenging market condition speaks boldly about the issue and its obligor,' KFH and Liquidity Management Centre said.

'Such news can only further reflect positively on the sukuk market and its recent gain in momentum.'

'We would like to thank everyone who participated in this issue and hope that the future can bring us similar success stories,' they added.-TradeArabia News Service

Tags: Bahrain | Liquidity Management Centre | KFH | sukuk | Building Materials Company |