Saudi's Tasnee Eyes Debut Riyal Sukuk

Saudi's Tasnee Eyes Debut Riyal Sukuk

Saudi Arabia's National Industrialization Company (Tasnee) will begin meeting investors next week ahead of a potential debut Islamic bond, or sukuk, the petrochemicals firm said in a regulatory filing.

May 1, 2012 9:33 by kippreport

Saudi Arabia’s National Industrialization Company (Tasnee) will begin meeting investors next week ahead of a potential debut Islamic bond, or sukuk, the petrochemicals firm said in a regulatory filing. HSBC’s Saudi Arabian unit has been selected to organise the roadshows, which could lead to a privately-placed transaction, according to a statement published late on Monday.

A number of Saudi entities have priced their first local currency sukuk this year as interest in the country’s debt market grows on the back of high investor liquidity and a desire to diversify funding sources away from bank loans. The largest of these was a 15-billion riyals ($4 billion) trade from the General Authority for Civil Aviation (GACA) in January. Diary firm Almarai Co and AJIL Financial Services Company completed deals worth 1 billion riyals and 500 million riyals in March and April, respectively.

(Reporting by David French; Editing by Amran Abocar)