Al Rajhi Bank plans to issue SAR-denominated Tier 1 sukuk

Al Rajhi Bank announced its intention to issue SAR-denominated Tier 1 sukuk by way of a public offering in Saudi Arabia.

The bank mandated Al Rajhi Capital as the financial advisor, sole arranger and dealer for establishing the SAR-denominated Additional Tier 1 Sukuk Program and the issuance and offering of the sukuk thereunder, according to a statement on Tadawul.

The board of directors approved, on Sept. 5, the issuance and offering of the sukuk, to enhance the bank’s tier 1 capital as well as for general corporate purposes, as detailed in the base prospectus prepared in relation to the sukuk.

The amount and terms of sukuk offer will be determined based on the market conditions.

The Capital Market Authority (CMA) issued its approval, on Oct. 20, on the bank’s application to register and offer the sukuk pursuant to the program.

The Saudi Exchange (Tadawul) issued its approval on the bank’s application to list the sukuk on Oct. 19.

Meanwhile, the bank obtained, on Sept. 25, the Saudi Central Bank’s (SAMA) non-objection with respect to the issuance of the sukuk.

The announcement is not intended as an invitation or offer to purchase, acquire or subscribe to any securities.

Al Rajhi Bank will announce any other relevant material developments in due course.

According to data compiled by Argaam, on Oct. 23, Al Rajhi Bank issued its prospectus for a SAR-denominated additional Tier 1 sukuk offering.