DUBAI: Saudi Basic Industries Corp. yesterday said it intends to repay an SR 8 billion ($2.13 billion) Islamic bond, or sukuk, ahead of maturity, from internal cash balances.
The petrochemicals giant sold the 20-year sukuk in 2007 in a deal which was arranged by HSBC's Saudi Arabian unit. The bond had a call option after five years, allowing SABIC to repay investors early, a Saudi-based banker told Reuters.
The company said in a statement to the Saudi stock exchange that it will purchase the assets in accordance with the terms and conditions of the sukuk, which will stop trading on June 16.
"The amounts due to the sukukholders will be deposited to the sukukholders accounts on July 15, 2012 from the company's available cash. Subsequently, the sukuk will be delisted and canceled," the statement said.
SABIC is the largest listed company by market capitalization in the six member Gulf Cooperation Council (GCC). Shares ended 0.8 percent higher yesterday.
SABIC to repay SR 8 billion sukuk early
