Al Rajhi Bank Chairman says unprecedented number of Sukuk market participants exceeded 600 investors

Abdullah Suliman Al Rajhi Chairman of Al Rajhi Bank

Al Rajhi Bank announced the successful completion of the issuance of Saudi Riyal-denominated Tier 1 Sukuk.

The issuance marks the largest issuance by a financial institution in the Kingdom of Saudi Arabia and the first of its kind in the bank’s history.

Due to the significant investor demand, the bank decided to increase the issuance size to an aggregate principal amount of SAR 6.5 billion, a total of 6,500 Suk with a fixed profit rate of 3.5% per annum.

Al Rajhi Bank Chairman Mr Abdullah Suliman Al Rajhi expressed his appreciation for the success of the issuance and extended his gratitude to the participant investors of qualified individual investors, corporates, and financial institutions.

The issuance size, which is considered the largest by a financial institution in the Kingdom and the diversity of investors, was evident in the order book, as the number of participants reached an unprecedented number of more than 600 investors, which reflects the valuable trust in Al Rajhi Bank.

He also revealed that the qualified individual investors’ orders have been fully allocated, which constitutes 38% of the total issuance, as an initiative to diversify the investor base by furthering the integration and participation of qualified individual investors in the local Sukuk market. This will contribute to the goals of the Kingdom’s Vision 2030 through the Financial Sector Development Program, which aims to diversify the sources of income and stimulate the investment climate.

The Chairman also expressed his appreciation and gratitude to Al Rajhi Capital Co. for their excellent management of the issuance as the sole lead manager and bookrunner, cementing their position as a pillar in the local Sukuk market.

Abdullah Suliman Al Rajhi concluded by thanking the bank’s clients for their continued loyalty and the investors for their trust in the bank, noting the bank’s commitment to providing the best Islamic financial solutions that comply with Shariah principles.

The bank announced, on Jan. 3, the commencement of offer through private placement of its SAR-denominated Sukuk, aiming to support its core equity base and fulfill its financial and strategic needs.