Editorial Details

Editorial

11 Apr 2013 Sadara Chemical Company Project Sukuk

Sadara Chemical Company Project Sukuk - Sadara announced the successful closing of the sukuk issued through its subsidiary Sadara Basic Services Company SBSC. The innovatibe project sukuk received strong investor demand, resulting in 2.6 times oversubscription based on the initial offering size of SR 5.25 billion. In keeping with this demand, Sadara up-sized the issuance to SR 7.5 billion. The sukuk has a floating rate and will have a tenor of approximately 16 years. The sukuk investors will receive an expected return of 6 month SAIBOR plus 95 basis points per annum, to be distributed semi-annually.The net proceeds of the issue of the sukuk will be used to provide finance for, and procure the construction and delivery of, plants forming part of a chemicals complex located in Jubail Industrial City II in the Eastern Province. (Shearman & Sterling advised the Issuer Group).

Financial Centre : London
Law Firm : Shearman & Sterling
Lawyer : Ben Shorten

Practice Area : Debt Capital Markets
Classification : Islamic Finance
Sub-classification : Musharaka
Industry : Chemicals

Advised Party : Issuer
Value Range Equivalent : 1000.01-5000.00

Issuer Jurisdiction : Saudi Arabia
Listing Jurisdiction : Saudi Arabia