Saudi Awwal Bank (SAB), rated A1 (Stable) by Moody’s and A– (Stable) by Fitch, has set the spread for its Tier 2 green bond offering at T+220 basis points.

Investor demand for the bond exceeded $3.5 billion, excluding Joint Lead Manager (JLM) interest. The deal is expected to be launched at 8:30PM HK / 13:30PM UK

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 will be issued under SAB’s $5 billion Medium Term Note Programme.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)