Saudi Taajeer sells $67m sukuk

Published Sunday, March 16, 2008

By Agencies

Saudi investment firm Taajeer has closed a 250 million riyal ($67 million) Islamic bond, a newspaper said on Sunday.

Individuals covered 25 per cent, or $67 million, of the issue, Al Eqtisadiah said, quoting Saudi Hollandi Bank, which arranged the Islamic bond, or sukuk.

The remainder of the issue for Taajeer for Vehicles, Equipment and Real Estate in Jeddah was covered by financial institutions and investment companies, it said.

The five-year sukuk was 50 per cent oversubscribed. Investors will receive a return of the Saudi interbank offered rate (SIBOR) as well as 2.5 per cent interest every six months.

It was the first sukuk by a private firm to be denominated in Saudi riyals, the paper said. (Reuters)

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