Saudi Binladin plans sukuk sale
Riyadh, March 12, 2013
Saudi Binladin Group, one of the largest construction firms in the kingdom, is currently meeting fixed income investors as it plans to issue a new local currency Islamic bond, or sukuk, sources aware of the matter told Reuters.
Roadshows are due to take place this week and next, at which point the size and pricing of the deal would be determined, a banking source said, speaking on condition of anonymity as he was not authorised to speak to media.
All-in pricing is likely to be around 2.5 percent, a second banking source said, giving a spread over the three-month Saudi interbank offered rate (Saibor) of around 150 basis points.
Given the amount of liquidity local investors have to deploy, a sukuk offering from the leading construction firm is likely to be in high demand - previous issues from Binladin Group have been well oversubscribed.
Saudi companies looking to raise funds have increasingly turned to the kingdom's debt capital markets as they aim to diversify funding sources away from bank loans and take advantage of high investor liquidity.
Dairy firm Almarai is also in the process of holding roadshows ahead of issuing a local currency sukuk. Those meetings are being arranged by NCB Capital.
The Binladin Group offering has a 2.5-year lifespan, which makes it its longest-running Islamic bond so far.
The company was last in the market in August when it issued a 1 billion riyals ($266.7 million) one-year sukuk through HSBC's Saudi Arabian unit. That deal was also priced at 2.5 percent.
It also sold a 700 million riyal sukuk with a nine-month tenor in July 2010 and a 1 billion riyal one-year sukuk in July 2011.
The latest offering is being arranged by the investment banking arm of Banque Saudi Fransi. - Reuters
More Construction & Real Estate Stories
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan
- Cluttons Dubai launches new luxury apartments
- Dubai developer Damac profits triple to $641m
- Dubai to start work on $544m water canal
- Dubai property market can absorb 25,000 units
- Jones Lang LaSalle renamed 'JLL'
- Aldar raises synergy estimate from Sorouh merger
- UAE industrial property sector keeps up growth
- Dubai residential property prices up 26pc
- Majid Al Futtaim to build new mall in Dubai IMPZ
- 300 firms to take part in Dubai property forum
- Naseej inks deal to develop Bahrain projects
- Dadabhai unveils new residential project
- Flowcrete completes Dubai Mall project