Saudi Aramco, Dow Venture Begins Bond Sale for Chemicals Complex
17 Mar 2013 08:25 GMT
 
Sadara Chemical Co., a joint venture of Saudi Arabian Oil Co. and Dow Chemical Co. (DOW), started selling an Islamic bond that may raise at least $1.4 (more)

Sadara Chemical Co., a joint venture of Saudi Arabian Oil Co. and Dow Chemical Co. (DOW), started selling an Islamic bond that may raise at least $1.4 billion to fund construction of a chemicals complex.

The sale of floating-rate securities in Saudi riyals is open only to Saudi nationals and institutions and will have a tenor of about 16 years, the Dhahran-based company said in an e- mailed statement today. Investors will receive a payment every six months equivalent to the six-month Saudi Interbank Offered Rate plus a margin to be decided later.

The size of the Islamic bond, or sukuk, is 5.25 billion riyals ($1.4 billion), although it may be increased to as much as $2.5 billion depending on demand, according to the sukuk prospectus. Other sources of funding will be scaled back if the issue exceeds the initial target.


Sukuk.me Wire External Story From Source: Bloomberg - Read full article here

Sukuk.me is not responsible for the content of external internet sites



--


© islamonline.com