GASCO to Invest $10M in SAIB Sukuk

Deal News | Nov 25, 2024 | Zawya

Saudi Arabia's National Gas & Industrialization Co. (GASCO) is set to purchase a $10 million tranche of sustainable, dollar-denominated sukuk issued by the Saudi Investment Bank (SAIB) on November 27, 2023. These sukuk securities have an expected annual return of 6.375%, are non-traded, with a term of 5.5 years, and dividends to be distributed semi-annually. The financial impact of the investment is anticipated to begin in the second quarter of 2025. This acquisition aligns with GASCO's investment policy and requires approval from the general assembly, according to compliance with existing laws and regulations.

Sectors

Financial Services
Energy
Investments

Geography

Saudi Arabia – The transaction involves Saudi-based companies GASCO and SAIB, highlighting the geographic focus on Saudi Arabia.

Industry

Financial Services – The article deals with the issuance and investment in sukuk, a form of Islamic financial instrument, involving financial entities like GASCO and SAIB which are significant players in financial services.
Energy – GASCO, the investing company, operates within the energy sector, specializing in gas distribution which connects the transaction to the energy industry.
Investments – The article discusses investment strategies and financial returns related to the acquisition of sukuk bonds, categorizing it within the investments sector.

Financials

$10 million – The investment amount GASCO is to expend on the SAIB sukuk.
6.375% – Expected annual return on the SAIB sukuk.

Participants

Name	Role	Type	Description
GASCO	Investor	Company	National Gas & Industrialization Co., a major gas distribution entity in Saudi Arabia investing in SAIB's sukuk.
Saudi Investment Bank (SAIB)	Issuer	Company	A financial institution issuing the $10 million sukuk tranche purchased by GASCO.
Bindu Rai	Writer	Person	Journalist who authored the press release.
Daniel Luiz	Editor	Person	Editor of the press release.