By Claire Valdini
Kingdom's largest construction firm looks to fund further expansion of its operations
Saudi Binladin Group, the kingdom’s largest construction company, issued a SR1bn ($266.6m) Islamic bond, known as a sukuk, as the firm expands its operations, Clifford Chance said on Wednesday.
The murabaha sukuk was issued by Saudi Binladin Group (SBG) Sukuk Ltd and guaranteed by the full group.
The Jeddah-based firm issued the sukuk, its third since 2010, on July 31. Clifford Chance and Al Jadaan & Partners advised HSBC Saudi Arabia on the issuance of the bond, guaranteed by Saudi Binladin Group, the law firm said in an emailed statement.
Companies in Saudi Arabia, the largest Arab economy, are stepping up bond sales as they fund expansion.
The kingdom issued $8.8bn worth of sukuk during the first six months of the year, accounting for 13 percent of global Islamic bonds, according to data from Zawya.
Saudi Binladin Group secured $2.3bn of funding from a syndicate of local and international banks for the expansion and development of King Abdulaziz International Airport in Jeddah last year.
The group became the largest contracting company through building roads, bridges and renovating mosques in Makkah and Medina. The group also has operations in real estate, textiles, telecommunications and distribution.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.