Bahrain’s Ibdar Bank to manage $1bn sukuk issue for Saudi developer

Bahrain’s Ibdar Bank to manage $1bn sukuk issue for Saudi developer
Bahrain’s Ibdar Bank to manage $1bn sukuk issue for Saudi developer

Riyadh – Mubasher: Saudi Arabia-based Salman Abdullah Bin Saedan Real Estate Group plans to issue the first tranche of its $1 billion sukuk in the coming period, Reuters reported, citing Ibdar Bank, the sukuk arranger.

Saedan will allocate sukuk returns to investing in affordable social housing projects across the kingdom, which have been lacking recently.

The sukuk issue will be listed on the Irish Stock Exchange, Ibdar Bank's senior executive director capital markets and treasury Ikbal Daredia told the news agency, noting that the issue may also be listed on Nasdaq Dubai.

Daredia revealed that his bank was planning to bring in one or two more regional and international banks to act as joint lead arrangers for the deal.

"More and more companies are becoming institutionalized and will seek to tap the sukuk market," Daredia stated.

"A majority of sukuk issuers are sovereigns but our focus is to bring more corporates to the market. This can help develop the sukuk primary markets and also trading activity in the secondary markets," he added.

The top official also noted another plan for a $500 million or more issue, but could not pinpoint the launch time of that issue as before or after May 2018, citing regulatory approvals and market conditions.

Source: Mubasher

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