JEDDAH – Saudi Binladin Group, the Kingdom's largest construction company, has completed issuing a SR1 billion ($267 million) short-term Islamic bond, or sukuk, a statement from the arranging bank's legal adviser said Wednesday. The sukuk, which has a 364-day tenor and was sold through the SBG Sukuk Ltd. special purpose vehicle, pays a profit rate of 2.5 percent and is the third such issue from the company, the statement from Clifford Chance said. HSBC's Saudi Arabian unit was the sole bookrunner for the transaction, the statement added. Binladin Group previously sold a SR700 million sukuk with a nine-month tenor in July 2010, and a SR1 billion one-year sukuk in July 2011. The Jeddah-based firm issued the sukuk, its third since 2010, on July 31. Clifford Chance and Al Jadaan & Partners advised HSBC Saudi Arabia on the issuance of the bond, guaranteed by Saudi Binladin Group, the law firm said in a statement. The Kingdom issued $8.8 billion worth of sukuk during the first six months of the year, accounting for 13 percent of global Islamic bonds, according to data from Zawya. Saudi Binladin Group secured $2.3 billion of funding from a syndicate of local and international banks for the expansion and development of King Abdulaziz International Airport in Jeddah last year. The group became the largest contracting company through building roads, bridges and renovating mosques in Makkah and Medinah. The group also has operations in real estate, textiles, telecommunications and distribution. – Agencies
