Saudi Telecom issues $1.25bn debut sukuk

Saudi Telecom — which is 70 percent owned by Saudi Arabia’s Public Investment Fund — started marketing its debut sukuk on Thursday. (Reuters)
Updated 11 May 2019
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Saudi Telecom issues $1.25bn debut sukuk

  • The 10-year bonds — the first US dollar denominated sukuk issued by the company — have been arranged by HSBC, JPMorgan, Standard Chartered, Samba, First Abu Dhabi Bank and KFH
  • Saudi Telecom’s new bonds, which will be listed on the Irish Stock Exchange, offer a 3.89 percent return

DUBAI: State-run Saudi Telecom has issued $1.25 billion in international sukuk, or Islamic bonds, the company said on Sunday.
The 10-year bonds — the first US dollar denominated sukuk issued by the company — have been arranged by HSBC, JPMorgan, Standard Chartered, Samba, First Abu Dhabi Bank and KFH.
Saudi Telecom’s new bonds, which will be listed on the Irish Stock Exchange, offer a 3.89 percent return.
That yield is around 25 basis points higher than US dollar-denominated Saudi government bonds with a similar maturity, but around 8 points below international sukuk issued by the state-owned Saudi Electricity Co.
Saudi Telecom — which is 70 percent owned by Saudi Arabia’s Public Investment Fund — started marketing its debut sukuk on Thursday with an initial price guidance of around 155 basis points over midswaps. The final pricing was 20 basis points tighter.
Fund managers said the initial price guidance was “tight” but that the paper would have nevertheless attracted good demand given the low number of sukuk issues in the market and pent up demand from shariah-compliant buyers.
The bonds attracted $4.5 billion in orders, Refinitiv’s IFR, a fixed income news service, reported.


UN compensation panel pays out $270m for Kuwait oil company

Updated 19 min 43 sec ago
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UN compensation panel pays out $270m for Kuwait oil company

  • The panel has approved 1.5 million claims brought by over 100 governments and international organizations
  • Some $3.7 billion of its $14.7 billion claim for oil production and sales losses resulting from damage to the country’s oil fields remains to be paid

BERLIN: A United Nations panel that oversees compensation claims stemming from Iraq’s 1990-1991 invasion of Kuwait says it has paid out $270 million to Kuwait’s national oil company.
The Geneva-based UN Compensation Commission said Tuesday the tranche brings to $48.7 billion the amount it has paid out. Iraq must currently set aside 1.5% of proceeds from oil exports for the compensation fund and payments are made once per quarter.
The panel has approved 1.5 million claims brought by over 100 governments and international organizations, with all but one fully paid out.
The remaining claim, which includes the latest payment, comes from the Kuwait Petroleum Corporation. Some $3.7 billion of its $14.7 billion claim for oil production and sales losses resulting from damage to the country’s oil fields remains to be paid.