Salman Abdullah Bin Saedan Real Estate Group (Saedan), a leading developer in Saudi Arabia, is gearing up for its debut issuance of Islamic bonds, the first tranche of a $1-billion sukuk, said Bahrain-based Ibdar Bank which is arranging the sale.

Ibdar said it will be setting up the sukuk programme that would be listed on the Irish Stock Exchange with a possible listing on Nasdaq Dubai.

Under this programme, sukuk tranches will be issued for Saedan’s upcoming social housing projects in the Saudi Arabia, it added.

“We are pleased to announce our partnership with the Salman Abdullah bin Saedan Real Estate Group, in a deal that represents a new line of business for Ibdar Bank, and look forward to the successful issuance of the sukuk," stated the bank chairman Tareq Sadeq, after signing the agreement with Group CEO Salman Abdullah bin Saedan.

Ibdar is also engaged in treasury, aviation, real estate, asset management, and wealth advisory activities.

Lauding the support of Ibdar, Saedan said: "We are confident that the group has chosen the right arranger for its debut issuance. Ibdar Bank has a strong team with extensive experience in sukuk and we look forward to a successful deal, and a long and fruitful relationship going forward."

"There is a shortage of affordable housing in Saudi Arabia and this sukuk will facilitate the development of much-needed social housing projects that are in the pipeline," he added

The deal is aligned with Ibdar’s strategic focus towards growing the bank’s capital market business.

Ikbal Daredia, the senior executive director for capital markets and treasury, said: "Ibdar is looking to issue more sukuk and other capital market instruments, as capital markets provides investors with a fixed income and can be easily traded in case liquidity is required."

"Out of the bank’s core business lines, capital markets is expected to witness the highest growth in 2018," he added.-TradeArabia News Service