(MENAFN- Khaleej Times) The London-based bank is helping Saudi borrowers in the power and utility, food and financial sectors, Fahad Al Saif, head of capital markets and corporate finance for HSBC in the country, said by telephone. The bank also expects "a lot of activity" in Saudi initial public offerings in 2014, he said.
Saudi Arabia, which approved a $219 billion budget this year, is tendering contracts to build roads, railways and ports as it seeks to improve its infrastructure and boost employment after protests toppled leaders across the Middle East. The kingdom unveiled a $130 billion stimulus plan in 2011.
"HSBC has several debt capital market mandates in the pipeline for the rest of the year and first quarter of 2014," Al Saif said in the interview, without giving names. "Sectors such as transport need financing. Port companies, railways and airlines are looking to do this either through banks or sukuk."
Al Saif said that he expects an additional SR10 billion ($2.7 billion) of sukuk, or Islamic bonds which comply with the ban on interest, to be issued before the end of the year in Saudi Arabia and a similar amount in the first quarter.
Saudi Arabian companies have raised $12 billion through Islamic debt sales so far this year, up from $8.8 billion a year earlier, according to data compiled by Bloomberg. HSBC helped arrange $4.5 billion, or 37 per cent, of sales in the Kingdom, down from 79 per cent a year earlier, the data show.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.