Saudi Binladin prices $267m sukuk issue

One of the kingdom's largest construction firms, it builds airports, hospitals and universities as well as conducting work on the holy mosques
Saudi Binladin prices $267m sukuk issue
Saudi money, Saudi currency, Saudi economy, Saudi finance, GCC currencies
By Reuters
Mon 22 Jun 2015 12:17 PM

Saudi Binladin Group, one of the kingdom's largest construction firms, has priced an Islamic bond with a 364-day tenor worth 1 billion riyals ($267 million), banking sources aware of the matter said on Monday.

The transaction, arranged by the investment banking arm of Gulf International Bank and BNP Paribas' Saudi unit, was priced with a profit rate of 2.5 percent, the sources said, speaking on condition of anonymity as the information isn't public.

Binladin builds airports, hospitals and universities as well as conducting work on the holy mosques in Makkah and Madinah. It has completed projects elsewhere in the Middle East, as well as Africa and Asia, according to its website.

Calls to the company seeking comment went unanswered.

Sources told Reuters last month that funds from the issue would be used to finance costs related to its work at the King Abdulaziz International Airport in Jeddah. Binladin is the main contractor for the project, which aims to increase the airport's capacity to handle 80 million passengers annually by 2035.

The terms of the sukuk are the same as those on the company's last Islamic bond offer in July 2013, which was arranged by the same banks.

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