Binladin has completed a SR1bn ($266.7m) Islamic bond sale

[Shariaa finance]

Saudi Arabia’s Binladin Group, one of the largest construction firms in the kingdom, has completed a SR1bn ($266.7m) Islamic bond sale, two bankers familiar with the matter said yesterday.The transaction, structured as a sukuk al-murabaha, has a one-year lifespan and pays a profit rate of 2.5 percent, the sources said, speaking on condition of anonymity as they weren't authorised to talk to the press.

A murabaha is a shariah-compliant cost-plus-profit arrangement. Binladin Group was not immediately available for comment.Sources said last month that BNP Paribas and the investment banking arm of Gulf International Bank  were marketing a deal for Binladin Group to Saudi investors, with proceeds to be used to fund its projects.