National Petrochemical Company (NPC) is planning its first sukuk (Islamic bond) issue.

The firm has started meeting investors to gauge interest for the issue and is offering it to sophisticated, Saudi-based investors.

Riyad Capital and Deutsche Securities have been appointed as lead managers.

The company, listed on the Saudi Stock Exchange (Tadawul) started up additional production units in 2013, decreasing its losses by 86 per cent in 2013 to $17.6m, from $123.7m in 2012. This helped the producer’s market capitalisation to grow to $3.6bn in March 2014.