Text size:

  • Small
  • Normal
  • Large
Prince Alwaleed bin Talal, the owner of Kingdom Holding. AFP
Prince Alwaleed bin Talal, the owner of Kingdom Holding. AFP

Saudi's Kingdom Holding to sell bonds for first time

Kingdom Holding, the investment vehicle controlled by Saudi Arabia's Prince al Waleed Bin Talal, is planning to sell bonds for the first time.

Kingdom Holding, an investment vehicle controlled by Saudi Arabia's Prince Al Waleed bin Talal, is planning to sell bonds for the first time.

The company joins a growing list of Saudi companies lining up to issue debt this year.

Kingdom Holding is due to hold a shareholders' meeting on March 27 to gain approval to sell conventional or Islamic bonds, the firm said in a statement to the country's stock market.

"Bonds sold so far this year in Saudi Arabia have been warmly welcomed by the market and are helping to bolster prospects for new issues," said Mohamed Gouali, the managing director and head of investment banking at Al Mal Capital in Dubai.

"There's a lot of money in the market and new issues are likely to be well received."

Kingdom Holding's high-profile investments are likely to help to stoke demand for the firm's debt both locally and globally, he added.

Under the stewardship of Prince Al Waleed, the firm has taken stakes in an eye-catching array of international firms including Apple, Citigroup and most recently the microblogging site Twitter.

Kingdom Holding had current bank borrowings and loans of 1.46 billion Saudi riyals (Dh1.43bn) at the end of last year, according to its financial statements. But so far it has not issued public debt to fund its investments.

The potential sale comes as corporate bonds are set to hit a record this year on the back of a wave of higher government spending.

Saudi Arabian Mining, the nation's largest miner, and Almarai, the region's largest dairy foods firm, have both said they plan to issue bonds this year.

Action has been hotting up in the debt market since the General Authority of Civil Aviation sold 15bn riyals of Islamic bonds in January.

Kingdom Holding that month posted a 19.9 per cent drop in profit for the fourth quarter of last year, with net income dropping to 187.8 million riyals compared to the same period of the year before.

"Kingdom Holding enters the year 2012 with solid optimism and continues to distribute dividends," Prince Al Waleed said after the company released the results.

He owns 95 per cent of Kingdom Holding, which was publicly listed on the Saudi Tadawul exchange in 2007.

For the past eight years, Prince Al Waleed has been listed as the richest Arab by Arabian Business magazine. Last year his net worth was estimated at US$21.3bn (Dh78.2bn).

As well as planning to build the tallest tower in the world in Jeddah, Kingdom has also had a focus on the media industry.

In December, the firm expanded its global media holdings with a US$300m (Dh1.1bn) investment in Twitter.

tarnold@thenational.ae

twitter: Follow our breaking business news and retweet to your followers. Follow us

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National