‎Alrajhi bank announces the success of the first sustainable AT1 capital sukuk issuance

Logo fo Alrajhi bank

Alrajhi bank succeeded in offering the first sustainable additional capital (AT1) sukuk denominated in US dollars, with a size of $1 billion and a profit rate of 6.375% annually. The sukuk are the first AT1 issuance from alrajhi bank in the global debt markets In US dollars (as part of an established AT1 program).

The success of this issuance comes after alrajhi bank’s successful issuances in 2023 and 2024. The issuance book subscription exceeded 3.5 billion US dollars represented by the large demand from international and regional investors, which reflects the bank’s position and strength in global markets.

This issuance will be used to enhance the bank’s liquidity and support the growth of its balance sheet, especially in terms of sustainable and social projects that are in line with the goals and vision of Saudi Arabia 2030, confirming the pioneering role of alrajhi bank and its contribution in developing of the financial sector.

The bank has previously announced the appointment of Al Rajhi Capital, Citi, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, HSBC, and Standard Chartered Bank as lead managers and book runners for the offering.

Mr. Abdulrahman Al-Ajaji, General Manager of the Treasury Group at alrajhi bank, expressed: “The successful debut US$ AT1 for alrajhi bank reflects investors’ continued confidence in alrajhi bank and the Kingdom’s solid fundamentals. We are proud to have once again accessed the market for a third consecutive time which now establishes al Rajhi Bank as the largest bank funder in ESG format in the Sukuk markets globally and are grateful for the support of our local and international investors”

Al-Ajaji explained the bank’s keenness on geographical diversity in allocating the sukuk, as 51% was allocated to investors in the Middle East and North Africa, 8% in Asia, 31% to investors in US and Europe, additionally the share of Saudi investors was 9%.

Al-Ajaji said, “We are proud to confirm the bank’s commitment to financing and supporting sustainable projects as we look to diversify our financing strategy. This will be demonstrated in the annual allocation and impact report, as it will allow investors to see the environmental and social benefits that this sukuk deal will create.

Mr. Abdulrahman Al-Ajaji concluded his statement that the success of the issuance strengthens alrajhi bank’s position as a leading financial institution committed to providing innovative banking solutions compatible with Islamic Sharia at the global level. He also indicated the bank’s commitment to continuing to provide the best financial solutions compatible with the provisions of Islamic Sharia in the local, regional and global markets. .

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