Saudi Hollandi Bank announced on Saturday the successful closing of its first public, listed Sukuk of SR725 million. This issue follows the private placement completed at the end of 2008, further cementing SHB ‘s position as the only bank in the the Middle East to raise Tier-II capital using a Shariah-compliant structure. Riyad Capital and Saudi Hollandi Capital acted as joint lead managers and bookrunners for this transaction. A large number of investors expressed interest in the SHB Sukuk with total orders in the range of SAR 3 billion. The structure of this Sukuk involves Mudaraba over the Islamic banking business of SHB. The Sukuk is a floating rate note (FRN) for 10 years, with an option to call the issue after five years. The investors will receive a return of SIBOR plus 1.90 percent per annum to be distributed bi-annually. The pricing was finalized below the original price indication again demonstrating the success of the transaction. SHB ‘s Chairman Engr. Mubarak Al-Khafrah said the successful completion of the second Sukuk issue will grow SHB's capital and help it to achieve its strategic plans. The substantial demand for the Sukuk, leading to an oversubscription of more than four times, is further proof of the dynamism and resilience of the Saudi Arabian economy and financial markets, he added. Dr. Bernd van Linder, managing director of Saudi Hollandi Bank, thanked investors for their contribution to the success of the issue. Among the investors participating were government institutions, insurance companies, investment and money market funds and financial institutions. He added that the success of the Sukuk issue would support the further development of the Saudi riyal debt capital markets.