BSF launches USD-denominated sukuk

18/01/2024 Argaam
Logo ofBanque Saudi Fransi(BSF)

Logo of Banque Saudi Fransi (BSF)


Banque Saudi Fransi (BSF) announced the commencement of issuing US dollar-denominated sukuk under the Trust Certificate Issuance Program, facilitated through a special-purpose vehicle and offered to qualified investors inside and outside Saudi Arabia. 

 

The offering period begins today, Jan. 18, and will conclude on Jan. 19, the bank said in a statement to Tadawul.  

 

Below are the details of the Sukuk issuance:

 

Details of Planned Sukuk Issuance

Issuance Type 

US dollar-denominated sukuk under the Trust Certificate Issuance Program

Offering Amount

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

Start Date of Offering

Jan. 18, 2024

End Date of Offering

Jan. 19, 2024

Targeted Investors

Qualified investors both within and outside Saudi Arabia

Minimum Subscription

$200,000, with increments of $1,000 thereafter

Offer Price

To be determined based on market conditions

Par Value

200,000

Sukuk Yield

To be determined based on market conditions

Maturity Period

5  years

Redemption Conditions

Sukuk can be redeemed before the scheduled maturity date under certain conditions detailed in the primary offering circular and the Trust Certificate Issuance Program.

Issuance Managers

Citigroup Global Markets Limited, Emirates NBD Bank, HSBC Bank, Merrill Lynch International, Mizuho International, and Saudi Fransi Capital as joint lead managers.

 

This announcement does not constitute an invitation or an offer to buy, own, or subscribe to any securities. It is subject to the sukuk terms and conditions.

 

Any new developments will be announced in due course.

 

The sukuk will be listed on London Stock Exchange's International Securities Market (ISM). The sale of the sukuk is permissible only in accordance with Regulation S of the US Securities Act of 1933, as amended.

 

According to data available on Argaam, BSF announced, on Jan. 17, its intention to issue US dollar-denominated sukuk under its Trust Certificate Issuance Program.

 

The move comes in line with the board of directors' resolution dated May 15, 2023, in which the board delegated certain executive management members with all powers and authority necessary or appropriate on behalf of the bank to establish the program and to issue any series of certificates from time to time.

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