Saudi Arabia’s Rawabi Vallianz issues SAR 1 bln sukuk

Saudi Arabia’s Rawabi Vallianz Offshore Co. (RVOS), an oilfield and vessel services company, has issued a SAR 1 billion debut sukuk through private placement to partially finance its marine assets over five years,  the company said in a statement.

RVOS has appointed Alinma Investment Co, Saudi Fransi Capital, Saudi Hollandi Capital and Bahrain’s GIB Capital as joint lead managers and book-runners of the sharia-compliant bonds which combine ijarah and musharakah structures.

The Singapore-registered Rawabi Vallianz is an equally-owned joint venture between Saudi Arabian conglomerate Rawabi Holdings and Vallianz Holdings.

Oilfield services companies have felt the impact of the oil price collapse as oil companies cut down fees.

Several Gulf companies have turned to sukuk to finance their projects as the cost of bank finance rises amid concern about liquidity and competition from governments forced to issue bonds for the first time in years.