Saudi Binladin Group, one of the largest construction firms in the kingdom, is meeting investors over a potential local currency Islamic bond sale, two banking sources aware of the deal said on Monday. BNP Paribas and the investment banking arm of Gulf International Bank are arranging the investor meetings, which began on Saturday and are likely to last for around two weeks, the sources said, speaking on condition of anonymity as the information is not public.
A spokesman for Binladin Group was not immediately available for comment. No size or pricing of the privately placed issue has been decided yet, although it will have a 364-day lifespan. The proceeds will be used to fund projects, one of the sources said. Given the amount of liquidity local investors have to deploy, a sukuk offering from a leading construction firm in the kingdom is likely to attract high demand - previous issues from the company have been oversubscribed. The sukuk sale is the latest from the firm and the fourth which has a 364-day tenor - the last one, a 1 billion riyal ($266.7 million) offering was completed in August, with previous deals in July 2010 and July 2011.
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