SABIC Sukuk to be available to eligible GCC investors

30 Apr '08

2 min read

The Saudi Basic Industries Corporation (SABIC), after having obtained the Saudi Capital Market Authority approvals yesterday, will embark on issuing its third Shariah Compliant Sukuk.

The road-show will commence on May 3, 2008 and will last for 10 business days. The Sukuk issue is denominated in Saudi Riyals.

The Sukuk will be available to eligible GCC investors and will be subject to a minimum holding of SAR 10,000 (USD2670).

SABIC has mandated HSBC Saudi Arabia Limited and Calyon Saudi Fransi Limited as joint lead managers and book runners to the issue of Sukuk, which features a Sukuk structure approved by SABB Amanah's Shariah Supervisory Committee.

The Sukuk offering is expected to be subscribed principally by institutional investors, consisting of banks and financial institutions, fund asset managers, pension funds and insurance companies and other respective establishments and companies. Individuals are also eligible to purchase the Sukuk in accordance with the established terms and conditions.

The Sukuk issuance reflects SABIC's wish to diversify its funding resources and its commitment to the development of the capital markets in the Kingdom of Saudi Arabia, complementing the equity markets and benefiting the country's wider economy.

SABIC had successfully launched its debut and second issue of Sukuk in July 2006 and August 2007 respectively. Standard & Poor's Rating Services has assigned an (A+) local currencysenior unsecured issue rating for the Sukuk I and Sukuk II of SABIC.

Further details on the third Sukuk issue including the subscription application form and offering circular, are available on the SABIC website.

Saudi Basic Industries Corporation

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