SAAD Sukkuk holders to set up committee

Investors in a US$650 million (Dh2,3bn) Islamic bond issued by the Saudi conglomerate Saad Group plan to set up a committee to represent their interests as the struggling firm undergoes a massive restructuring of its debt. Such committees are commonplace in debt restructurings.

In the case of the Saad Group Islamic bond, called the Golden Belt 1 Sukuk, the committee would deal with Citicorp Trustee Company, the acting trustee, and “any other relevant party”, according to a draft resolution obtained by Reuters.

A banker in Dubai who has seen the document said it was “anybody’s guess” how effective the committee would be in representing investor interests, but noted that Saad had $30 billion in assets and roughly $20bn in debt, leaving investors with a reasonable level of confidence that they would be repaid.