EXCLUSIVE: TASNEE unveils SAR 5.575bn sukuk program
By Abir Atamech of Zawya
Riyadh-based National Industrialization Company, or Tasnee, will this month issue its first Islamic bonds, or sukuk, under an SAR 5.575 billion program. The sukuk will be privately placed with investors resident in the Kingdom of Saudi Arabia and is solely arranged by HSBC Saudi Arabia, which acted as the Shariah advisor as well.
The first of the series is expected to carry a floating rate of six months SIBOR reference rate.
The sukuk comes at a time when the kingdom is witnessing a fast pace of sukuk issue. Data compiled by Zawya Sukuk Monitor shows USD 6.5 billion worth of sukuk were sold in the year to date. Saudi Fransi Bank is marketing a benchmark sukuk in the international markets that is also expected to close this month.
The trend is expected to continue, with many issuers revealing plans to tap the Islamic bond market
, as the kingdom's entities - both governmental and corporate - seek various means to raise capital to finance expansion plans and projects and to restructure debt.
© Zawya 2012
© Copyright Zawya. All Rights Reserved.