The deal was arranged by HSBC, which also acted as bookrunner.

It is the first sukuk in Saudi Arabia to be structured through an offshore special-purpose vehicle, which is registered with the stock exchange (Tadawul). This takes advantage of new rules allowing greater foreign participation in the Tadawul.

The proceeds form the sukuk will be used to develop a hotel in Mecca, part of the $6bn Abraj al-Bayt project.

In December 2007, Binladin arranged a $500m Islamic loan with Arab Banking Corporation, Samba, Commercial Bank of Qatar and Arab National Bank.