DUBAI — Saudi Arabia issued its first government-backed Islamic bond this week, for its aviation agency, setting a benchmark for pricing of conventional and Islamic bond issues this year because of its size.

At 15 billion riyals, or $4 billion, it was the largest Islamic bond, or sukuk, ever issued within the kingdom. The sukuk, guaranteed by the Saudi Ministry of Finance, was oversubscribed three times, and the Saudi General Authority for Civil Aviation will use the proceeds to finance the expansion of King Abdulaziz International Airport in Jidda, the second-largest city in Saudi Arabia, after Riyadh.

Read the complete story(Some news sites require registration)