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Saudi's state airports operator surpasses record Islamic bond issue value

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(Credit: Reuters) The image is the sunset on a North American airport.Airport
October 2
12:44 PM 2013

State airports operator of Saudi Arabia had priced a SAR15.2 billion or USD4.05 billion Islamic bond issue. This is a statement released to the press after the firm had surpassed the firm's IPO sukuk back in 2012.

According to the transaction done by the General Authority for Civil Aviation (GACA), who oversees the Gulf kingdom's air industry, covered nearly twice the bids coming from thirty one government funds, insurance and investment companies as well as local banks. This was confirmed by the Saudi Gazette newspaper.

No details though were provided as to the term of the sukuk or its pricing level reported by the newspaper.

The transaction's success was expected, as the huge local investor community continues to be very liquid. Another factor is that the offer was the closest thing existing to a Saudi sovereign debt instrument. The government itself does not isssue bonds but the sukuk carries with it a guarantee from the Saudi Arabian Ministry of Finance.

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