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Mon 22 Oct 2007 12:21 AM

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Rajhi Cement plans $595mn sukuk

Saudi firm will use cash raised by Islamic bonds to fund cement projects in Jordan, Syria and Sudan.

Saudi Arabia's Al-Rajhi Cement Investment Co will sell $595 million of seven-year, Islamic bonds in the first quarter, a company executive said on Sunday.

Al-Rajhi Cement, a subsidiary of the family-owned Al-Rajhi Group, will use the cash to fund cement projects in Jordan, Syria and Sudan, the executive, who declined to be identified said.

The money will be invested in expansion Jordan, Syria and Sudan, the executive said.

Saudi-owned investment bank Siraj Capital and Jordan-based Al-Aoun Capital Group and Capital Investments, will arrange the sale.

Islamic bonds, known as sukuk, comply with Islam's ban on lending on interest and are backed by assets that give investors a share of profit instead.

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