Binladin Group said to raise SAR 1 bln via sukuk

Saudi Binladin Group has initiated a marketing campaign to issue sukuk for a 364-day period that could generate up to SAR 1 billion for the construction firm, Reuters reported.

Binladin Group, which is one of the largest construction firms in the kingdom, plans to use some of the funds to finance costs related to its work at King Abdulaziz International Airport in Jeddah, according to the report. The company is the main contractor for the project, which aims to boost the airport’s capacity to 80 million passengers per year by 2035.

The Saudi unit of BNP Paribas and the investment banking arm of Gulf International Bank are reportedly working on the sukuk transaction.

In July 2013, Binladin Group sold a SAR 1 billion 364-day sukuk at a profit rate of 2.5 percent via the same banks.

The kingdom is starting to see more sukuk issuance in recent months. Earlier this month, Argaam reported on Najran Cement’s plan to issue Riyal-denominated sukuk. The National Shipping Company (Bahri) also plans to issue SAR 3.9 billion in sukuk over a 10-year period starting this quarter.