The first of its kind globally, Fawaz Al-Hokair & Co and SABB sign a deal for Islamic hedging of lending rates

The deal, being the first of its kind globally is purely Islamic; reflecting the ability and flexibility of Islamic banking to respond quickly to the modern financial requirements and the tailoring thereof to meet the needs of borrowers and lenders.

Commenting on this event, Mohammed Al-Tuwaijri, SABB Treasurer, said; "This is a precedent event for international financial markets and adds to the achievements of SABB. This emphasizes SABB's ability and success in managing the projects it is involved in and to provide the best financial products and solutions to cope with the modern requirements that cater for the special needs of investors and borrowers.'

He added that, 'Al-Hokair Co, represented by its management are distinguished for their ability to understand the facts and various requirements of the market as well as to seek effective solutions for drawing the future financial requirements of the company; this is in addition to their keenness to benefit from the Islamic banking services, thereby enabling the company to achieve precedence by the conclusion of this special deal for shifting the company's loan to be purely Islamic.'

SABB has recently launched many Islamic financial derivatives that suit all requirements of investors and borrowers in liaison with its foreign partner, HSBC.