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Saudi Arabian Islamic lender Al Rajhi Bank, rated Aa3 by Moody’s (Stable), A by S&P (Stable) and A by Fitch (Stable), marginally tightened the price on its $1 billion Additional Tier 1 (AT1) capital social sukuk to 6.15% from initial price thoughts in the 6.625% area.
The yield was set at 6.15%, with a re-offer price at par.
Books peaked at $3.3 billion before settling at $2.9 billion at launch, excluding JLM interest.
The Regulation S perpetual non-call six-year fixed rate resettable issuance carries a rating of Baa3 by Moody’s and will be issued under the $5 billion AT1 Capital Certificate Issuance Programme established by Al Rajhi Tier 1 Sukuk Limited with the Saudi lender acting as obligor.
The world’s largest Islamic bank in terms of assets and market capitalisation mandated Al Rajhi Capital Company, Dubai Islamic Bank PJSC, Emirates NBD Capital, First Abu Dhabi Bank PJSC, Goldman Sachs International, HSBC, Mashreq, Morgan Stanley, Nomura, Standard Chartered Bank and Warba Bank K.S.C.P. as joint lead managers and joint bookrunners on the deal, with Standard Chartered Bank as sole sustainability structurer. Affin Hwang Investment Bank Berhad has been appointed as the co-manager.
Net proceeds from the issuance will be allocated to finance or refinance eligible projects which fall under the bank’s Sustainable Finance Framework.
The certificates will be listed on the London Stock Exchange’s International Securities Market.
(Writing by Bindu Rai, editing by Brinda Darasha)
