Al Bayan issues first ringgit sukuk from Saudi firm

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Riyadh-based Al Bayan Holding became the first Saudi Arabian company to issue an Islamic bond in Malaysian ringgit, paving the way for more corporations from the kingdom to tap into Malaysia's market, the world's biggest for sukuk.

Al Bayan issued 200 million ringgit ($65.4 million) as the first tranche of a newly established 1 billion ringgit programme, a statement from Guidance Financial Group, the company's advisers, said on Wednesday. Pricing details were not immediately available.

Both the creation of the programme, rated AA3 by local agency RAM Ratings, and the issue of a Malaysian currency sukuk are firsts by a Saudi company.

Companies in the Gulf Arab region have beeen looking at issuing Islamic bonds that target Malaysian investors as a way to diversify funding sources and tap Asian demand for Middle East debt.

Al Bayan issued the sukuk as a wakala; certificates are issued by an originator through a special-purpose vehicle that buys assets which are given to an agent for management.

HSBC Holdings' Islamic unit in Malaysia, Hong Leong Islamic Bank, and Kenanga Investment Bank Bhd acted as joint lead managers on the deal, while Abu Dhabi's Al Hilal Bank was manager in the United Arab Emirates.

Al Bayan has interests in businesses including construction of infrastructure and buildings, general contracting, information technology products and services, and advertising and publishing.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
The flood gates open

The flood gates open

Turkey’s new fondness for sukuk has been met with increasing...

"Sleeping giant" debt market awakes in Saudi Arabia

After years in which the growth of Saudi Arabia's bond market...

Gulf bond issuers see opportunity in Malaysia

Gulf bond issuers see opportunity in Malaysia

Gulf looks to tap Malaysian investors with ringgit issues; country...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew