Project Islamic bond market seen growing in Saudi Arabia
It is foreseen that project Islamic bonds will gather steam in Saudi Arabia with the launch of the first project sukuk this month as issuers looking to vary sources of funding following global financial woes that may deteriorate lending from international banks.
It is expected that this will provide a financing alternative and attract more issuance in the future.
The first price guidance for the sukuk is seen at 6-month Saudi interbank offered rate (SAIBOR) plus 95-105 basis points. The final price though is foreseen to be known on Sept. 28 and could provide an idea of the demand for such a project, giving energy for further offerings.
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