Saudi Gaca plans second sukuk at year end
Jeddah, January 22, 2012
Saudi Arabia's General Authority for Civil Aviation (Gaca) plans to issue its second sukuk at the end of the year to help fund its 27 billion riyal ($7.2 billion) airport in Jeddah, its top executive told Al Arabiya.
'The second issuance will be, God willing, at the end of this financial year (December 31),' Prince Fahd bin Abdullah said.
Gaca is set to print a 15 billion riyal, ten-year sukuk, its debut Islamic bond offering, which carries a profit rate of 2.5 percent.
The sukuk, which is fully guaranteed by the Saudi Ministry of Finance, was a first in a series of Islamic bonds from the authority to help fund airport development in Jeddah.
Last year, Saudi industrial conglomerate Bin Laden Group won the contracts to develop the first phase of the Jeddah airport, raising its annual capacity to 30 million passengers.
Saudi Arabia is currently implementing multi-billion dollar infrastructure projects and revamping many of its airports to cater to a growing number of passengers. - Reuters