SABIC plans to pay SR8b sukuk early

RIYADH – Saudi Basic Industries Corp. (SABIC) Wednesday said it intends to repay an SR8 billion ($2.13 billion) sukuk (Islamic bond) ahead of maturity from internal cash balances.

The petrochemicals giant sold the 20-year sukuk in 2007 in a deal which was arranged by HSBC’s Saudi Arabian unit. The bond had a call option after five years, allowing SABIC to repay investors early, a Saudi-based banker told Reuters.

The company said in a statement to the Saudi stock exchange that it will purchase the assets in accordance with the terms and conditions of the sukuk, which will stop trading June 16.

"The amounts due to the sukuk holders will be deposited to the sukuk holders accounts on July 15 2012 from the company’s available cash. Subsequently, the sukuk will be delisted and cancelled," the statement said. SABIC is the largest listed company by market capitalization in the six member Gulf Cooperation Council (GCC). Shares ended 0.8 percent higher Wednesday. – Reuters