Font Size

- Aa +

Wed 13 Jun 2012 06:45 PM

Font Size

- Aa +

Saudi giant says to repay $2.13bn bond early

Saudi Basic Industries Corp to repay Islamic bond ahead of maturity from cash balances

Saudi giant says to repay $2.13bn bond early
SABIC CEO Mohamed Al Mady (Getty Images)

Saudi Basic Industries Corp on Wednesday said it intends to repay a SR8bn ($2.13bn) Islamic bond, or sukuk, ahead of maturity, from internal cash balances.

The petrochemicals giant sold the 20-year sukuk in 2007 in a deal which was arranged by HSBC's Saudi Arabian unit.

The bond had a call option after five years, allowing SABIC to repay investors early, a Saudi-based banker told Reuters.

The company said in a statement to the Saudi stock exchange that it will purchase the assets in accordance with the terms and conditions of the sukuk, which will stop trading on June 16.

"The amounts due to the sukukholders will be deposited to the sukukholders accounts on July 15 2012 from the company's available cash. Subsequently, the sukuk will be delisted and cancelled," the statement said.

SABIC is the largest listed company by market capitalisation in the six member Gulf Cooperation Council (GCC). Shares ended 0.8 percent higher on Wednesday.

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.