Monday, November 19, 2007

Siraj Capital eyes $250 mln U.S. Islamic bond sale

from Reuters

Saudi Arabian-owned investment bank Siraj Capital said on Sunday it is in final negotiations to arrange a $250 million Islamic bond sale for a U.S.-based company. The deal would be the second Islamic bond sale, or sukuk, for a U.S. entity after the $165 million sukuk sold by Texas-based East Cameron Gas Co earlier this year ... "It is for an oil and gas company operating in South America and listed on the New York stock exchange," Bey said, declining to identify the firm. The funds would be used to partly finance exploration, Bey said. "The credit crunch has forced CFOs of firms in the U.S. to look for alternative finance vehicles," said Bey. "A sukuk can do that and taps into the high liquidity in this region." The majority of investors in the East Cameron transaction were New York-based hedge funds looking at diversifying their capital market portfolios, Bey said.

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