Wednesday, Jun 15, 2011
(This story was originally published Tuesday.)
DUBAI (Zawya Dow Jones)--Saudi International Petrochemical Co. (2310.SA), or Sipchem, said it would launch its Islamic sukuk bond issue Saturday, June 18.
The company has previously said its debut mudabara sukuk would be worth at least 1.5 billion Saudi riyals ($400 million).
The offering will be open for 10 working days and will be registered in denominations of SAR100,000, with a minimum initial subscription of SAR1 million, Sipchem said in a statement posted on the website of the Saudi bourse late Monday.
The private petrochemicals producer said it has appointed Deutsche Securities and Riyad Capital as joint lead managers and expects the debt to be offered to financial institutions, mutual funds, insurance companies, pensions funds and individuals.
The sukuk is limited to Saudi nationals or people legally registered with the commerce and industry ministry, the company said.
It said more details would be made available on the company's website Wednesday, June 15.
Sipchem enjoyed a strong first quarter of 2011, as strong petrochemical prices and increased volumes boosted profit by 49% to SAR120 million.
The company has previously said its planned sukuk would be used to diversify financing resources and debt instruments to fund new projects and expansions. Earlier this year it raised its capital by 10% to SAR3.7 billion.
It plans to start production at a new ethyl acetate/butyl acetate swing plant in Jubail in the second quarter of 2013 as it seeks to grow downstream products.
Sipchem shares closed down 0.9% at SAR21.35 Monday.
-By Angus McDowall, Dow Jones Newswires; +971-4-446-1685, angus.mcdowall@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-06-11 0355GMT
