IslamicFinance.de

According to a recent statement, Saudi Hollandi Bank has completed a SR1.4 billion ($373.3 million) sukuk issue. It is further said that despite the seven-year maturity of the subordinated sukuk, it can be redeemed by the issuer after the end of the fifth year. The price of the Islamic bond 1.15% higher than the six-month Saudi interbank offered rate. The issuance was marketed to Saudi investors, among which were government funds, banks, insurance companies, corporates and sophisticated investors.

SAUDI Hollandi Bank had emitted a sukuk in value of SR1.4 billion ($373.3 million) with a maturity period of seven years, but it can be redeemed by issuer already after the end of the fifth year. The aim of the issuance is mainly focused on developing the Islamic business of the bank by following prudent asset management strategy and assets-liabilities mix and maintaining a sufficient capital buffer.

A few days ago, the Board of Directors of Saudi Hollandi Bank has made a decision to issue Sukuk worth SR 1,400 million. The issuance is a private offering aiming to support its capital base by using a Shariah compliant structure. The latter is to be approved by the competent authorities.

International Polymers Company (IPC), hastaken signed a Shariah compliant SR1.4 bln (US$373 mln) loan from Saudi banks, Riyad Bank, National Commercial Bank, Saudi Hollandi Bank, and The Saudi British Bank.
The funds will sustain the project financing of a production plant currently being built in Jubail Industrial City.

Saudi Hollandi Bank and the International Finance Corp have signed an agreement to support small to medium businesses in the kingdom. This also contains the fact that SHB will work with the IFC to study and quantify the kingdom's SME business segment and introduce credit policies, processes, products and services that will simplify the banking experience for small to medium businesses.

Jabal Omar Development Company the leading planner and developer of the Jabal Omar mountain area, has received agreements for bridge funding collectively worth SR1.35 billion from five national banks, namely Al Rajhi Bank, National Commercial Bank, Bank Al Jazira, Saudi British Bank (SABB) and Saudi Hollandi Bank.
The bridge loan provides immediate cash flow that would serve as a working capital until the round of funding goes through and acts to bridge the gap between times when financing is needed.
The Jabal Omar development in Makkah project calls for construction of residential and commercial center in area close to the Grand Mosque in Makkah. The master plan of development covers 230,000 square meters.
The development consists of 39 commercial and residential towers, notable of which is the 50-storey Twin Tower.
The project has led other developers to follow our lead in improving and urbanizing the central area surrounding the Mosque.

Arab News reported on 31 December that Saudi Hollandi Bank closed its SAR 775 mn first tranche of a SAR 1.5 bn Tier-II Sukuk issuance approved by the bank`s shareholders. The 10-year floating rate note is 2 % above SIBOR (Saudi Interbank Offered Rate) and can be called at the end of 5 years. According to the Chairman Mubarak Al-Khafrah Saudi Hollandi is the first to support its capital in this way. Saudi Hollandi Capital acted as sole lead manager & book runner for this transaction.

Geoff Calvert is the managing director.