Saudi Binladin Group (SBG) has successfully closed its second short-term sukuk, attracting more than SR3 billion ($800 million) of orders for a SR1 billion issue.

Books were opened on July 16 and closed in the same day.

The privately placed sukuk was offered to Saudi investors and issued through SBG Sukuk Company.

Following on from the success of last year’s issuance, SBG’s second visit to the short-term sukuk market has managed to attract even higher demand than the previous issue allowing for a longer term instrument with tighter pricing.

The sukuk has a maturity of 364 days and pays a profit rate of 2.5 per cent per annum. The first sukuk, which was issued in July 2010, matured in April 2011.

HSBC Saudi Arabia acted as the sole lead manager and bookrunner for the transaction and  also the payment administrator and the sukuk holders' agent, while HSBC Amanah acted as the shariah advisor. The Saudi British Bank (SABB) acted as the security agent.

With the current low interest rate environment, investors are finding it more challenging to find appropriate investments, and SBG short-term sukuk represents an ideal choice, said a statement.

Total number of investors reached 39, comprising mutual funds, private investors, government-linked entities, financial institutes and corporates which sets a new record for number of private investors in private placements in Saudi Arabia, it said. – TradeArabia News Service