Arabian Business reported that Saudi Binladin Group, the kingdom’s largest construction company, issued a SAR 1 billion Islamic bond known as a sukuk as the firm expands its operations. The murabaha sukuk was issued by Saudi Binladin Group Sukuk Limited and guaranteed by the full group.

The Jeddah based firm issued the sukuk, its third since 2010 on July 31st 2012. 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 an emailed statement.

Companies in Saudi Arabia, the largest Arab economy, are stepping up bond sales as they fund expansion. The kingdom issued USD 8.8 billion worth of sukuk during the first 6 months of the year accounting for 13% of global Islamic bonds.

Saudi Binladin Group secured USD 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 Medina. The group also has operations in real estate, textiles, telecommunications and distribution.

Source - Arabian Business.com

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