Saturday, Jan 21, 2012
BEIRUT (Zawya Dow Jones)--A Saudi government sukuk issue worth 15 billion Saudi riyals ($4 billion) has been more three times oversubscribed by local institutional investors, Saudi-based Al Riyadh daily reports Saturday citing an official.
The kingdom's General Authority of Civil Aviation, or GACA, has successfully completed the allocation of the sukuk offering that it launched last week to partly finance the new King Abdulaziz International Airport project, Fahd Bin Abdullah, GACA's president, said according to the paper.
The project's overall cost is about SAR27.1 billion and the sukuk has a profit rate of 2.5%, according to Zawya Dow Jones data.
This 10-year riyal-denominated sukuk is the first of a number of bond issues that GACA plans to launch this year and next year, Al Riyadh reports.
The institutional investors that have subscribed to these Islamic bonds include some government institutions, most of the Saudi banks, and some large companies, the daily cites Bin Abdullah as saying.
Newspaper website: http://www.alriyadh.com/2012/01/21/article702862.html
-By Beirut Bureau, Zawya Dow Jones; +961-1-985 757; BeirutZDJ@zawya.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
21-01-12 0740GMT
