The floating rate sukuk has a tenor of five year and returns to investors Saudi interbank offered rate (Sibor) plus 2 per cent twice a year, with the initial investment being repayment in a lump sum payment in 2012.

Saudi Hollandi acted as sole bookrunner and agent on the deal, which was 50 per cent over subscribed. Taajeer said it chose to issue the local currency sukuk in the face of the difficult credit environment and in the hope of achieving a better price than it would on global markets.