VOL. XXXI

NO. 37

20-JUNE-1988

Financial and Banking News

LOANS AND ISSUES

Saudi Government Issues SRl.5bn in Bonds

The Saudi Arabian Monetary Agency (SAMA) last week issued SRl.5bn ($400mn)worth of "development bonds" with a complex yield formula designedto avoid prohibitions on the payment of interest under Islamic law. The couponon the new bonds is payable semiannually and is linked to the cash flowgenerated from unspecified government "development projects", withSAMA the sole source of cash flow...