Saudi Arabia Finances Jeddah’s International Airport Expansion
19 May, 2012
In January HSBC led the issuance of a 10 year, £4 billion sukuk designed to finance the expansion of Jeddah’s International Airport. This was the country’s first sovereign guaranteed sukuk and has been allocated a zero risk rating by the Saudi Monetary Authority, which means it can not only be held as an investment, but also be used as collateral for finance from the Saudi central bank. The offer was more than three times oversubscribed. Sources at HSBC expect to see at least five more sukuk issuances this year.