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Al Rajhi Banking and Investment Corp. is marketing a USD-denominated benchmark-size five-year sukuk offering at initial price thoughts (IPTs) of Treasuries plus 125 basis points area.
Proceeds from the senior, unsecured wakala sukuk will be used for general corporate purposes.
Al Rajhi Sukuk Ltd. is the issuer and trustee, while Al Rajhi Bank is the obligor.
Standard Chartered Bank (Taiwan) is appointed the lead manager. Al Rajhi Capital, Bank ABC, Emirates NBD Capital, Mashreq and the Islamic Corporation for the Development of the Private Sector are structuring agents.
Al Rajhi Bank is rated Aa3/A/A− (Moody’s/S&P/Fitch). The issue is expected to be rated Aa3 (Moody’s) / A- (Fitch).
The sukuk will be listed on London Stock Exchange and the Taipei Exchange.
Listed on the Saudi Stock Exchange, Al Rajhi Bank is the largest bank in the Middle East by market capitalisation and the largest Islamic bank by total assets.
Early this month, the Saudi capital market regulator approved the application of Al Rajhi Bank’s debt programme of a total value of 10 billion riyals ($2.66 billion).
(Writing by Brinda Darasha; editing by Seban Scaria)
