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Saudi Arabia’s Islamic lender Al Rajhi Bank has opened books for its benchmark-sized US dollar Additional Tier 1 (AT1) social sukuk, with initial price thoughts (IPTs) at around 6.625%.
The perpetual, non-call six-year (PNC6Y) sukuk is issued under Al Rajhi Tier 1 Sukuk Limited’s $5 billion AT1 capital certificate issuance programme. The structure is based on mudaraba and will be offered in Regulation S format only.
The certificates are expected to be rated Baa3 by Moody’s, while the obligor, Al Rajhi Banking and Investment Corporation, holds ratings of Aa3 (Moody’s), A (S&P), and A (Fitch), all with stable outlooks.
Proceeds will be allocated to finance or refinance eligible social projects under Al Rajhi’s Sustainable Finance Framework.
Joint lead managers and bookrunners include Al Rajhi Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs, HSBC, Mashreq, Morgan Stanley, Nomura, Standard Chartered, and Warba Bank. Standard Chartered is the sole sustainability structurer.
The certificates will be listed on the London Stock Exchange’s International Securities Market.
(Writing by Brinda Darasha; editing by Bindu Rai)
