Saudi Arabia on Thursday completed the first government guaranteed sukuk for the General Authority of Civil Aviation (GACA) raising 15 billion Saudi riyals (Dh14.6 billion). The success of the issue and the competitive profit rate of 2.5 per cent offered on the sukuk is expected to open a barrage of Islamic bond issues in the kingdom.
“As the first sukuk from a government guaranteed entity this deal has significance for the development of the regional sukuk market. Prior to this issuance, issuers priced their new securities against US Treasury bonds — adding a premium for the perceived additional risk,” said Walid Khoury, CEO of HSBC Saudi Arabia………………………………………..Full Article: Source