PHOTO
Saudi Arabia's Al Rajhi Bank, rated Aa3 by Moody’s (Stable), A by S&P (Stable) and A by Fitch (Stable), has mandated banks to arrange a series of investor calls for a potential USD-denominated perpetual Additional Tier 1 (AT1) social sukuk issuance with a non-call period of six years (PerpNC6).
The proposed Reg S issuance will be arranged through Al Rajhi Tier 1 Sukuk Limited, with proceeds earmarked for refinancing purposes. Al Rajhi Bank is the world’s largest Islamic bank in terms of assets and market capitalisation.
The offering is expected to be rated Baa3 by Moody’s and will be issued under the $5 billion Additional Tier 1 Capital Certificate Issuance Programme established by Al Rajhi Tier 1 Sukuk Limited with the bank acting as obligor.
Al Rajhi Bank has mandated Al Rajhi, Dubai Islamic Bank (DIB), Emirates NBD Capital, First Abu Dhabi Bank (FAB), Goldman Sachs, HSBC, Mashreq Bank, Morgan Stanley, Nomura, Standard Chartered Bank (structuring advisor), and Warba Bank as joint bookrunners, with Affin Hwang acting as co-manager.
Investor calls and roadshows commenced on January 6, 2026, ahead of the benchmark-sized offering. The sukuk will be issued under the bank’s RegS framework and is expected to attract regional and international investors.
The instrument is classified as a social sukuk, aligning with the bank’s ESG objectives.
An amount at least equal to the net proceeds from the issuance will be allocated by the bank to finance and/or refinance, in whole or in part, eligible sustainable projects which fall under its Sustainable Finance Framework.
(Writing by Brinda Darasha; editing by Daniel Luiz)
