Gulf International Bank sells $533m bond

09 November 2009

Issue more than three times oversubscribed

Bahrain-based Gulf International Bank (GIB) has completed the sale of a SR2bn ($533m) bond issue in Saudi Arabia.

The issue was increased in size from SR1.5bn after it was more than three times oversubscribed. The final order book totalled SR5bn.

GIB priced the issue at 127.5 basis points above the Saudi interbank offered rate (Sibor), below the initial price guidance of 130 to 140 basis points above Sibor. The bond has a tenor of three years (MEED 5:11:09).

The issue was a private placement, sold only to sophisticated investors in the kingdom, including institutional investors, banks and government agencies. GIB acted as lead arranger on the issue, as well as the UK’s HSBC.

GIB is jointly owned by the six governments of the GCC.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.