Tuesday, May 15, 2012
DUBAI (Zawya Dow Jones)--Banque Saudi Fransi (1050.SA) is expected to launch a benchmark-sized, five-year, U.S. dollar Islamic bond, or sukuk, issue today, after receiving strong demand, a banker aware of the transaction said Tuesday.
The bank had already received firm orders worth more than $1.5 billion by late Monday with the initial price guidance around 200 basis points above mid swaps, the banker, who declined to be identified, told Zawya Dow Jones.
Citigroup, Credit Agricole CIB and Deutsche Bank are book runners for the planned issue.
Banque Saudi Fransi last month set up a $2 billion sukuk program, paving the way for the lender part-owned by France's Credit Agricole to tap international liquidity.
Several companies in the kingdom have sold debt in the domestic market this year, but international issues remain scant despite a big demand for blue-chip Saudi debt, analysts say.
The General Authority of Civil Aviation launched a landmark SAR15 billion sukuk earlier this year, which carried a guarantee from the Saudi government.
-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-05-12 0654GMT
