SABB seals SR1bn Sukuk for Saudi Binladin Group

The Sukuk has a 5 year maturity with semi- annual profit payments.

This is The Saudi Binladin Group's debut Sukuk issuance into the Saudi debt capital markets. HSBC Saudi Arabia was the sole Lead manager and bookrunner for the issuance.

This innovative issuance has to its credit several firsts including, being the first unrated Sukuk of its size to be successfully distributed entirely within the Kingdom and the first issued through an offshore special purpose vehicle which is registered, cleared and settled through Tadawul.

The Sukuk proceeds are to be used for the construction of an iconic hotel project that The Saudi Binladin Group is developing in the Holy City of Makkah.

Engineer Yahya Mohammed Binladin, Vice Chairman and CEO 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 develop the growth of Islamic financing in the industry. 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."

Timothy Gray, CEO of HSBC Saudi Arabia, stated:

"This issuance has seen strong interest from the sophisticated investor community in Saudi Arabia. This interest is reflective of the high esteem with which The Saudi Binladin Group is regarded with in the Kingdom and also recognizes our credentials as a leader in the Sukuk and debt capital markets. HSBC's Islamic brand, Amanah, is synonymous with leadership, innovation and professional delivery and this issuance confirms our position as the premier Islamic finance provider in the Kingdom and around the world."

Fahad Al-Saif, Associate Director, Investment Banking Finance, comments:

"We are always keen to lead the development of Islamic financing industry and Saudi capital markets innovative solutions such as this issuance. This Transaction stresses our integrated Islamic and innovative financing solutions capabilities which HSBC will deliver in Saudi Arabia."