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.


MODON to establish integrated pharmaceutical complex

Updated 23 May 2019
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MODON to establish integrated pharmaceutical complex

JEDDAH: The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed an industrial land lease covering more than 62 thousand square meters in the city of Madinah, to build a pharmaceutical complex including research and development centers, with a total investment reaching SR 570 million.

MODON’s Director General Khalid bin Mohammed Al-Salem said that the signing of the contract was the result of joint work with the National Program for the Development of Industrial Compounds. MODON provided various facilities and incentives to support the investment, with the project set to provide nearly 1000 jobs for both genders with a localization rate exceeding 50 percent.

He added that the project is in line with the goals of the National Industrial and Logistics Development Program (NIDLP) to localize the most advanced industries in the world, in accordance with Saudi Vision 2030 for economic diversification.

Since its inception in 2001, MODON has been developing integrated industrial lands in accordance with the highest international standards. It currently oversees 35 industrial cities under development in various regions of the Kingdom, in addition to supervising private industrial parks and cities. The developed industrial lands exceeded until today 198.8 million square meters, while the existing industrial cities include 3,474 productive factories.