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Bin Ladin to use funds ... to finance key projects.

Saudi Binladin Group prices key Islamic bond

RIYADH, June 22, 2015

Saudi Binladin Group, one of the kingdom's largest construction firms, has priced an Islamic bond with a 364-day tenor worth SR1 billion ($267 million), banking sources aware of the matter said on Monday.

The transaction, arranged by the investment banking arm of Gulf International Bank and BNP Paribas' Saudi unit, was priced with a profit rate of 2.5 per cent, the sources said, speaking on condition of anonymity as the information isn't public.

Binladin has built airports, hospitals and universities and is conducting work on the holy mosques in Makkah and Madinah. It has completed projects elsewhere in the Middle East, as well as Africa and Asia, according to its website.

Calls to the company seeking comment went unanswered.

Sources told Reuters last month that funds from the issue would be used to finance costs related to its work at the King Abdulaziz International Airport in Jeddah. Binladin is the main contractor for the project, which aims to increase the airport's capacity to handle 80 million passengers annually by 2035.

The terms of the sukuk are the same as those on the company's last Islamic bond offer in July 2013, which was arranged by the same banks.-Reuters




Tags: Islamic bond | Saudi Binladin |

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