The Saudi Binladin Group issued a 700 million-riyal ($187 million) Islamic bond, known as sukuk, on July 12 through a private placement to Saudi investors as the Jeddah-based company expands its operations.
The Saudi Binladin Sukuk Co. issued the Islamic bond, which was more than 2.5 times oversubscribed, lead manager HSBC Saudi Arabia said in an e-mailed statement today. The sukuk had a zero coupon on a discount-to-maturity basis, the unit of HSBC Holdings Plc said in the statement.
Companies in Saudi Arabia, the largest Arab economy, are stepping up bond sales as they fund expansion. Corporate debt sales from the kingdom totaled $3.23 billion by May 2010, from $200 million in the period a year earlier, according to data compiled by Bloomberg. Saudi Electricity Co., the Arab world’s largest utility, sold 7 billion riyals in Islamic bonds in May.
The Saudi Binladin Group will invest 105 million euros ($136 million) to more than quadruple output at a Senegalese oil refinery, Qasim al-Shaikh, the oil and petrochemical unit chief, said May 1. The group is also bidding to develop the first phase of an airport at Medina, home to Islam’s second-holiest site.
Source : Bloomberg