Sadara Chemical Company (Sadara) announced the successful closing of the sukuk issued through its subsidiary Sadara Basic Services Company (SBSC). The sukuk has 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 has up-sized the issuance to SR 7.5 billion.
The sukuk have 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.
Read more: http://www.arabnews.com/news/446814
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