Al Rajhi Bank raised $1bn through issuing 5,000 Tier 2 social sukuk to meet its financial and strategic objectives, the bank said in a statement on Saudi stock exchange, the Tadawul on September 10.
The 10.5-year sukuk—callable after 5.5 years—was placed under the bank’s international sukuk programme and attracted strong investor demand, with the issuance structured to support the bank’s capital adequacy, fund growth ambitions, and back social initiatives in line with Saudi Arabia’s Vision 2030 and sustainable finance priorities.
The sukuk, issued through a special purpose vehicle, will generate an annual yield of 5.65%.
The bank set the minimum subscription at $200,000 with a maturity period of 10.5 years, and may be redeemed after half the term under certain conditions.
According to the statement, the sukuk will be listed on the London Stock Exchange's International Securities Market and can be sold under Regulation S of the US Securities Act of 1933, as amended.
Al Rajhi Bank appointed Al Rajhi Capital, Crédit Agricole Corporate and Investment Bank, Citigroup Global Markets Limited, DBS Bank Limited, Goldman Sachs International, HSBC Bank plc, J.P. Morgan Securities plc, MUFG Securities EMEA plc, Natixis, Nomura International plc, and Standard Chartered Bank as underwriting managers.
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