Al Rajhi Bank plans additional tier-1 sustainable sukuk

Logo of Al Rajhi Bank

Al Rajhi Bank announced its intention to issue USD-denominated additional tier-1 capital sukuk under its international additional tier-1 capital sukuk program, established by the bank on April 18, following the decision of the board of directors on March 25.

In a statement to Tadawul, the bank said the value and terms of the sukuk offering will be determined based on prevailing market conditions. The sukuk, to be issued through a special purpose vehicle, will be available to qualified investors both domestically and internationally.

The primary objective of the offering is to bolster tier-1 capital, addressing general banking needs, and aligning with the bank's financial and strategic objectives within the sustainable financing framework, the statement indicated.

The bank appointed Al Rajhi Capital, Citigroup Global Markets Limited, Dubai Islamic Bank, Emirates NBD, Goldman Sachs International, HSBC, and Standard Chartered Bank as joint lead managers and bookrunners for the potential offering.

The sukuk offering is subject to approval from the relevant regulatory authorities and will be executed in compliance with applicable laws and regulations.

The announcement does not constitute an invitation or offer to purchase, own, or subscribe to any securities and is subject to the terms and conditions of the sukuk.

The bank intends to disclose any significant developments as they occur, adhering to relevant regulations, the statement added.