Binladin Group readies $266m for Makkah hotel
Riyadh, September 17, 2008
Construction conglomerate Saudi Binladin Group has raised SR1 billion ($266.7 million) through an Islamic bond to finance a hotel, the lead arranger said on Wednesday.
The sukuk, arranged by HSBC Saudi Arabia, has a five-year maturity with semi-annual profit payments, and it will be used to finance the hotel project in Makkah, the bank said in a statement.
The sukuk will be the first unrated Islamic bond of its size to be distributed entirely within the world's top oil exporter, it added.
Binladin has earlier raised SR3.2 billion through an Islamic facility to help fund construction of a university north of Jeddah, one of the banks arranging the deal said in March.
Borrowers around the world have been hard-hit by a global credit crunch following the US subprime mortgage crisis.
But the Gulf Arab region has been largely seen as less exposed to international financial turmoil as it reaps windfall revenues from a near five-fold in oil prices since 2002.
This has fuelled a real estate boom that saw developers embarking on mega construction and hotel projects.-Reuters