19 July 2011
Saudi Binladin Group ("SBG") has successfully closed its second short term Sukuk, attracting more than SAR 3bn of orders for a SAR 1bn issuance. Books were opened on Saturday 16th of July and were closed in the same day. The privately placed sukuk was offered to Saudi sophisticated investors and issued through SBG Sukuk Co.
Following on from the success of last year's issuance, SBG's second visit to the short term sukuk market has managed to attract even higher demand than the previous issue allowing for a longer term instrument with tighter pricing. The Sukuk has a maturity of 364 days and pays a profit rate of 2.5% p.a.. The first Sukuk, which was issued in July 2010, matured in April 2011
HSBC Saudi Arabia acted as the sole Lead Manager and Bookrunner for the transaction and also the Payment Administrator and the Sukuk holders' agent while HSBC Amanah acted as the Shariah Advisor. The Saudi British Bank ("SABB") acted as the Security Agent.
With the current low interest rate environment, investors are finding it more challenging to find appropriate investments, and SBG short term Sukuk represents an ideal choice.
Total number of investors reached 39, comprising of mutual funds, private investors, government-linked entities, financial institutes , and corporates which sets a new record for number of private investors in private placements in Saudi Arabia.
-Ends-
© Press Release 2011
Saudi Binladin Group ("SBG") has successfully closed its second short term Sukuk, attracting more than SAR 3bn of orders for a SAR 1bn issuance. Books were opened on Saturday 16th of July and were closed in the same day. The privately placed sukuk was offered to Saudi sophisticated investors and issued through SBG Sukuk Co.
Following on from the success of last year's issuance, SBG's second visit to the short term sukuk market has managed to attract even higher demand than the previous issue allowing for a longer term instrument with tighter pricing. The Sukuk has a maturity of 364 days and pays a profit rate of 2.5% p.a.. The first Sukuk, which was issued in July 2010, matured in April 2011
HSBC Saudi Arabia acted as the sole Lead Manager and Bookrunner for the transaction and also the Payment Administrator and the Sukuk holders' agent while HSBC Amanah acted as the Shariah Advisor. The Saudi British Bank ("SABB") acted as the Security Agent.
With the current low interest rate environment, investors are finding it more challenging to find appropriate investments, and SBG short term Sukuk represents an ideal choice.
Total number of investors reached 39, comprising of mutual funds, private investors, government-linked entities, financial institutes , and corporates which sets a new record for number of private investors in private placements in Saudi Arabia.
-Ends-
© Press Release 2011
