Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 51 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Riyadh raises $2b in new sukuk
September 14, 2018
 Print    Send to Friend

DUBAI: Saudi Arabia has raised $2 billion in new sukuk, or Islamic bonds, completing its external funding requirements for 2018.

The transaction is the kingdom’s second international sale of sukuk after a $9 billion issue last year.

The bond sale was “part of the Ministry of Finance’s commitment to the development of the Shariah-compliant debt capital markets,” the country’s debt management office said in a statement on Thursday.

The kingdom, acting through the ministry of finance, started marketing the notes with an initial price guidance of around 145 basis points over mid-swaps.

The price guidance was tightened to a final spread of 127 basis points over mid-swap, equivalent to a 4.3 per cent yield, signalling wide investor appetite for the deal.

Orders topped $10 billion, the Saudi debt management office said.

Citi, HSBC and JPMorgan coordinated the transaction, and worked as joint lead managers together with BNP Paribas, Mizuho and Samba Capital.

The structure of the sukuk is the same one adopted for the 2017 issue, comprising a mudaraba agreement, a form of Islamic investment management partnership, plus a murabaha facility that would trade commodities with a special purpose vehicle.

The sukuk was marketed a day after sources told Reuters that Saudi Arabia was planning to issue a new dollar sukuk. The paper is due to settle on Sept. 19 and matures in January 2029.

The government has raised a total of $52 billion in international notes, both Islamic and conventional, since it started tapping the international debt markets in 2016 as part of its efforts to diversify its oil-reliant economy.

Reuters

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Abu Dhabi to host International Trade Development Week 2018
ABU DHABI: Abu Dhabi will host the 5th International Trade Development Week. The annual conference, which is organised by the Ministry of Economy, will be launched by Sul..
ADIPEC 2018 KICKS OFF IN ABU DHABI
ABU DHABI: Sheikh Hamed Bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince’s Court, on Monday opened the 21st Abu Dhabi International Petroleum Exhibition and Confe..
UAE keen to harness new tech: VP
DUBAI: His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Sunday said that being proactive in creati..
UAE makes a quantum leap in GCI
DUBAI: The UAE has made a new leap in the Global Competitiveness Index, (GCI), according to the recent Global Competitiveness Report issued by the World Economic Forum (D..
Italy’s exports to UAE touch $6.12b mark
Dubai: Italy’s exports to the UAE amounted to EUR 5.4 billion ($6.12 billion) in the last three years, and there is a huge capacity to boost Italy’s re-exports to the cou..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright