Banque Saudi Fransi (BSF) has begun issuing additional Tier 1 capital sukuk denominated in dollars, Al-Eqtisadiah reported on April 30.

BSF said in a statement on Tadawul that the offering is based on the board of directors' decision last August, which included authorising executive management members with the necessary power and authority on behalf of the bank to establish an additional Tier 1 capital sukuk programme and issue any series of sukuk from time to time.

In January, BSF completed a sukuk offering worth $750mn, while the total sukuk amounts to 3,750 (based on the minimum currency category and total issue size). The sukuk were listed on the International Securities Market on the London Stock Exchange, with an annual yield of 5.375% and a maturity period of 5 years.

The new issuance is expected to be made through an offering directed at qualified investors inside and outside Saudi Arabia, with the aim of strengthening the bank's capital and for general banking purposes. The value and terms of the sukuk offering will be determined based on market conditions and will be subject to the approval of competent regulatory authorities.

BSF has appointed Abu Dhabi Commercial PGSC, Citigroup Global Markets Limited, Credit Agricole CIB, Emirates NBD PGSC, HSBC PLC, Mashreq PSC, Merrill Lynch Saudi Arabia, Mizuho International PLC, MUFG Securities EMEA PLC, and Saudi Fransi Capital as joint lead managers.

The bank, which operates in all types of banking services, was established in 1977 with a current market value of SAR43.35bn ($11.56bn). Kingdom Holding Company owns the largest stake in its capital at 16%.

BSF's net profits for the first quarter of 2025 increased by 16.5% year-on-year to SAR1.33bn ($354.67mn), according to its statement on April 21, due to a 13.2% increase in total operating income, supported by increases in net special commission income, profits from investments acquired for non-trading purposes, foreign exchange income, net fee and commission income, and trading income.