Saudi firms to follow short-term sukuk trend - HSBC

20 July 2010

HSBC has said the successful sale of a nine-month corporate Islamic bond by private construction company Saudi Binladin Group (SBG) will encourage similar issues in the kingdom where access to longer-term financing is tight, Reuters has reported. SBG's sukuk was issued on a zero coupon basis and was oversubscribed 2.5-times, HSBC said. Interest for such issues is apparent from both issuers and investors, according to HSBC Saudi's head of global capital financing Sunil George, and Muhammad Farhan, head of Islamic finance.

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