• Home
• /
• Business

BNP Paribas completes Sukuk bond issue in KSA for Saad

DUBAI — BNP Paribas has completed the second largest bond issue in Saudi Arabia for Saad Trading Contracting and Financial Services Company (STCFSC). BNP Paribas acted as sole bookrunner for this $650 million 5-year bond issue in Sukuk format (meaning the issue complies with the investment principles of Islamic law).

This transaction is the first Sukuk issued in Saudi Arabia for a private business and illustrates the growing interest in the Sukuk market.

Saad Group has been rated BBB+ (S&P). STCFSC is one of the two principal companies of the group. Its main activities include construction, real estate and healthcare. STCFSC is a key investor in various sectors, particularly in the Saudi and international banking sector. For several years, BNP Paribas has been one of its straegic partners in investment banking.

The orderbook achieved $1 billion within two days, double the targeted size of $500 million. European investors took the largest amount with 46pc, significant orders also came from the Middle East and from Asia.