Saudi Awwal Bank (SAB), rated A1 (Stable) by Moody’s and A– (Stable) by Fitch, has launched a $1.25 Tier 2 green bond offering at T+220 basis points. The bond pays a semi-annual coupon of 5.947%.

Investor demand for the bond exceeded $3.3 billion, excluding Joint Lead Manager (JLM) interest. It will be listed on LSE’s International Securities Market.

The offering was marketed at Initial Price Thoughts (IPTs) of T+245bp area.

The notes will be rated Baa2/BB (Moody’s/Fitch), below the issuer’s A1/A rating.

Goldman Sachs International and HSBC Bank plc acted as global coordinators and also served as joint lead managers and bookrunners alongside Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets, DBS Bank, Emirates NBD Capital, Mashreq, Mizuho International, and Société Générale.

HSBC Bank plc also acted as Sole Green Structuring Bank.

The notes are issued under SAB’s $5 billion Medium Term Note Programme.

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@lseg.com)