Al Rajhi Bank sets initial value of SAR-denominated Tier 1 sukuk at SAR 4 bln

Logo of Al Rajhi Bank

Al Rajhi Bank started today, Oct. 30, launching the first tranche of SAR-denominated Tier 1 sukuk for individual and institutional investors.

The offering will run until Nov. 10, the bank said in a filing to Tadawul.

The issuance amount was initially set at SAR 4 billion, the bank said, adding that the definitive issuance amount will be determined after the completion of the offer period, based on market conditions at that time.

Institutional investors wishing to purchase the sukuk should submit a duly completed form to the relevant dealers. As for retail investors, they should submit a duly completed form to the receiving agents through the available channels, including phone banking or ATMs.

The receiving agents are Al Rajhi Bank, Saudi National Bank, Alinma Bank, Arab National Bank, Banque Saudi Fransi, AlJazira Capital, Riyad Bank, and Bank Albilad

The sukuk may be redeemed by Al Rajhi Bank in certain cases as detailed in the base prospectus.

On Oct. 20, the Capital Market Authority (CMA) approved Al Rajhi Bank's request for the registration and public offering of the debt instruments within a program worth no more than SAR 10 billion, according to data available with Argaam.