DUBAI: Saudi Arabia’s Binladin Group, one of the largest construction firms in the kingdom, has completed a SR1bn ($266.7m) Islamic bond sale, two bankers familiar with the matter said yesterday.
The transaction, structured as a sukuk al-murabaha, has a one-year lifespan and pays a profit rate of 2.5 percent, the sources said, speaking on condition of anonymity as they weren't authorised to talk to the press.
A murabaha is a shariah-compliant cost-plus-profit arrangement.
Binladin Group was not immediately available for comment.
Sources said last month that BNP Paribas and the investment banking arm of Gulf International Bank were marketing a deal for Binladin Group to Saudi investors, with proceeds to be used to fund its projects.
Reuters
