Saudi Hollandi Bank has raised SR725 million ($193.3 million) from the sale this month of its second sukuk, sources familiar with the deal said on Saturday.

Hollandi priced the issue at 190 basis points above the six-month interbank lending rate Saibor, sources at Saudi Hollandi Capital said. The six-month SAIBOR stood at 1.0475 per cent on Saturday.

The issuance has a ten year maturity period and is callable in 2014.

Hollandi mandated Riyadh Capital and Saudi Hollandi Capital to arrange the issuance which it said could be traded in the Saudi bourse.

The sukuk issue is the first in the Gulf Arab region to test the water since Dubai shocked financial markets on November 25 when it called for a debt standstill for several of its state-linked companies.

In a private placement last year, Saudi Hollandi Bank issued its first sukuk worth 775 million riyals, priced at 200 basis points above SAIBOR, which was then about double its current rate.-Reuters