Saudi Arabia's National Petrochemical Company (Petrochem) has completed a 1.2 billion riyal ($319.9 million) debut sukuk issue, it said in a bourse filing on Monday.

The Islamic bond, which has a five year lifespan, was priced at 170 basis points over the six-month Saudi interbank offered rate (Saibor).

Deutsche Bank's Saudi arm and the investment banking arm of Riyad Bank were the lead arrangers for the issue, according to the statement.

A number of Saudi companies have been tapping the local sukuk market in recent months, many for the first time, as they look to take advantage of abundant liquidity among Saudi investors to secure cheap borrowing rates and diversify away from traditional funding sources.-Reuters