BNP Paribas completes Sukuk Bond issue in Saudi Arabia for Saad
BNP Paribas has completed the second largest bond issue in Saudi Arabia for Saad Trading Contracting and Financial Services Company (STCFSC). BNP Paribas acted as sole bookrunner for this USD 650 million 5-year bond issue in Sukuk format (meaning the issue complies with the investment principles of Islamic law). This transaction is the first Sukuk issued in Saudi Arabia for a private business and illustrates the growing interest in the Sukuk market.
Saad Group has been rated BBB+ (S&P). STCFSC is one of the two principal companies of the group. Its main activities include construction, real estate and healthcare. STCFSC is a key investor in various sectors, particularly in the Saudi and international banking sector. For several years, BNP Paribas has been one of its straegic partners in investment banking.
The orderbook achieved USD 1 billion within two days, double the targeted size of USD 500 million. European investors took the largest amount with 46%, significant orders also came from the Middle East and from Asia.
- First international bank to issue a public SAR bond in Saudi Arabia
- Bahrain between a rock and a hard place in bond decision?
- BNP Paribas Investment Partners & Saudi Investment Bank form JV
- Saudi Arabia: International bankers outraged at rumored secret Algosaibi - al Saad bailout
- IFIS report reveals continued rapid growth in Islamic Bond issues. 13.4 billion dollars issued in the first half of 2006 alone, surpassing entire 200