Saudi Hollandi to Pay Less Than Fransi in Sukuk Sale
Saudi Hollandi Bank will probably be able to sell Islamic bonds more cheaply than other issuers in the largest Arab economy as a dearth in debt issuance in the past two months boosts demand for the notes.
The board of the Riyadh-based bank, which is 40 percent owned by ABN Amro Holding NV, approved sukuk valued at 1.4 billion riyals ($373 million), it said Sept. 9. The yield could be around 2.25 percent for five-year notes, said Akber Khan, director of asset management at Al Rayan Investment in Doha. That compares with the 2.947 percent Banque Saudi Fransi paid in May for its five-year sukuk and a rate of 2.5 percent for state-run General Authority of Civil Aviation’s Islamic bonds maturing in January 2022.