Wednesday, May 16, 2012
(This story was originally published Tuesday.)
DUBAI (Zawya Dow Jones)--Banque Saudi Fransi (1050.SA) has launched a $750 million, five-year Islamic bond, or sukuk, issue, after receiving strong demand, a banker aware of the transaction said Tuesday.
The bank received orders worth about $4 billion and the final price of 185 basis points over mid-swaps is tighter than initial guidance, the banker, who declined to be identified, told Zawya Dow Jones.
Citigroup, Credit Agricole CIB and Deutsche Bank are book runners for the 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) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
16-05-12 0352GMT
