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JEDDAH — Contracting and Financial Services Company, Saad Trading, has issued a $650 million worth Sukuk.
The core business of Saad Trading, based in Al-Khobar in the Eastern Province, is construction and real estate investments.
Lead-managed by BNP Paribas, Samba Financial Group and Arab Bank PLC, the issuance of Sukuk Al-Manfa'a was announced on Friday even though it reached commercial close on May 15.
It is the second largest corporate Sukuk originating from Saudi Arabia after the $800m (SR3b) Sukuk issuance by Saudi Basic Industries Corp. (Sabic) in September 2006. It also follows the $600 million Sukuk Al-Ijara issued by the Riyadh-based Dar Al-Arkan Real Estate Development Co., which closed in April 2007, and which was the first international Sukuk issued by a Saudi corporate.
The Sukuk Al-Manfa'a was issued through a special purpose vehicle; the Golden Belt 1 Sukuk Company B.S.C. domiciled in offshore Bahrain, and according to the issuer, Saad Trading will use the proceeds for general corporate purposes — balance sheet finance, expansion finance or refinancing existing debt. The pricing is quite competitive at 85 basis points (bps) or 0.85 per cent per annum.
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