Middle East: First Corporate Bond set in Saudi Arabia

Global Finance, Apr 2003 by Platt, Gordon

The International Finance Corporation, the part of the World Bank that lends to the private sector, signed a rival-denominated credit guarantee of $6.7 million for the first corporate bond issue in Saudi Arabia.

The partial guarantee will back a bond issue by Saudi Orix Leasing of up to $15 million, which the IFC says it hopes will start the development of a local corporate bond market.

The Saudi Investment Bank also will guarantee part of the issue, for which it will be adviser and market maker. The bank owns 28% of Saudi Orix Leasing, and IFC holds a 10% stake.The Trade Development and Investment Group holds 32% of the leasing company, and Japan-based Orix Group holds the remaining 30%.

-Gordon Platt