Saudi’s Advanced Petrochemical Sells SAR1bn Debut Sukuk

Saudi Arabia’s Advanced Petrochemical Co. has completed the sale of a SAR1 billion ($266.5 million) Islamic bond, the company said in a bourse filing on Tuesday, its debut sukuk issuance.

The five-year offering received investor orders worth SAR2.43 billion and was sold to government entities, insurance companies, investment and money market funds, companies and financial institutions, the statement said.

A floating rate pricing structure was used for the sukuk, whose proceeds will be used for general business purposes, although the rate at which Advanced was borrowing was not disclosed.

Advanced said on October 22 it would meet fixed income investors in the Kingdom ahead of the potential sukuk sale, with the deal arranged by HSBC Saudi Arabia and Riyad Capital, the investment banking arm of Riyad Bank.