HSBC Saudi Arabia was the sole lead manager and bookrunner for a SAR 1 billion ($237 million) Sukuk issued by the Saudi Binladin Group (SBG). The issue is SBG’s debut issuance in the Saudi debt capital markets. The Sukuk has a five year maturity with semi- annual profit payments.
The Sukuk proceeds are to be used for the construction of a five star hotel project that SBG is developing in the holy city of Mecca.
The Sukuk featured several innovations, including being the first unrated Sukuk of its size to be successfully distributed entirely within the Kingdom, and the first issued through an offshore vehicle which is registered, cleared and settled through Tadawul, the Saudi stock exchange.
Engineer Yahya Mohammed Binladin, chairman and chief executive of The Saudi Binladin Group, said, "One of the goals of The Saudi Bin Ladin Group is to support the capital markets of Saudi Arabia and to develop the growth of Islamic finance. Additionally this inaugural issuance enables The Saudi Binladin Group to establish a presence in the Saudi capital markets and substantially broadens the company's investor base to include private investors and other entities”.