The Saudi National Bank intends to issue additional tier-two "green" capital bonds denominated in US dollars, Al-Eqtisadiah reported on August 25.
The bank said in a statement to Tadawul that the issuance aims to improve tier-two capital for general banking purposes and to meet its financial and strategic objectives. The value and terms of the green bonds will be determined according to market conditions.
The issuance will target qualified investors inside and outside Saudi Arabia. The bank has appointed HSBC Bank PLC, Goldman Sachs International, Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets Limited, DBS Bank Ltd, Emirates NBD Bank PJSC, Mashreqbank PSC, Mizuho International PLC and Societe Generale as joint lead managers for the potential offering.
The Saudi National Bank clarified that the announcement does not constitute an invitation or offer to purchase, own or subscribe to any securities, and remains subject to the terms and conditions of additional tier-one perpetual capital sukuk. The bank will announce any other material developments to shareholders in due course according to relevant regulations and rules.
Green bonds are debt securities specifically earmarked to raise money for climate and environmental projects, representing a growing financing trend among Middle Eastern banks seeking to support sustainable development initiatives.
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