Riyadh-based Saudi British Bank, or SABB, has sold a SAR 1.5 billion (USD 400 million) sukuk, its first, through private placement. The Islamic bond was arranged and structured by HSBC Saudi Arabia, which has played a major role in structuring and selling all of the sukuk sold in the Kingdom this year. SABB owns 51% of HSBC Saudi.
SABB opted for private placement of its five-year, domestic sukuk, which is restricted to sophisticated investors tax-resident in the Kingdom of Saudi Arabia. It pays 120 basis points over three months SIBOR, on a quarterly basis, according to Zawya Sukuk Monitor.
SABB last tapped the bond market in 2010 when it sold a USD 600 million bond, part of a USD 1.6 billion program, in the international markets, according to Zawya Bonds Monitor. Earlier, it sold a USD 325 million bond in 2006, which matured in April 2011.
The Kingdom is witnessing a flurry of sukuk activity this year. Data compiled by Zawya Sukuk Monitor reveals that USD 6.4 billion of sukuk has been sold in the first quarter of 2012, including issues from GACA, Saudi Electricity and Almarai.
© Zawya 2012
