JEDDAH - Gulf International Bank (GIB) said on Monday the successful closure of its Saudi riyal-denominated bond issue, which was launched in Saudi Arabia last week through the bank’s Riyadh branch.
Although the issue was originally targeted for SR1.5 billion, the bank said the final issue size had been increased to SR2 billion due to the substantial demand from investors. The order book was closed on Sunday with orders totaling around SR5 billion, representing an oversubscription of more than three times.
GIB’s Saudi riyal bond issue is the first bond issue by a financial institution in Saudi Arabia in 2009. It also represented the largest-ever book for a fixed income SR private placement in the Kingdom, or by any financial institution issuance in the Kingdom. The issue was privately placed with institutional investors in the Kingdom. Government institutions, commercial banks, insurance firms and industrial companies are among the investors.
The allocation process of the 3-year notes was finalized Monday, while the settlement will be completed next Sunday.
The bonds have been priced at 127.5 basis points over Saudi interbank offered rate. – SG