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Saudi Arabia’s Alinma Bank has priced its $500 million perpetual non-call 5.5-year AT1 sukuk at par, with a fixed resettable coupon of 6.625%. Initial price thoughts for the sustainable benchmark Regulation S issuance were in the 7.125% area.
The spread on the Mudaraba structure is set at 234.6 basis points over US Treasuries, with a yield of 6.625%.
Investor demand saw the orderbook exceed $1.7 billion, excluding JLM interest.
A listing on the London Stock Exchange’s International Securities Market.
Earlier this month, the bank, rated A2 by Moody’s and A- by S&P and Fitch (all with a stable outlook), opened subscription for a SAR‑denominated AT1 perpetual sukuk with a private placement offer as part of its SAR 5 billion ($1.33 billion) programme.
Last August, Alinma Bank also saw a similar debt raise of $500 million from an AT1 sustainable sukuk issuance, with a coupon of 6.25%, with the final orderbook marginally larger at $1.75 billion.
(Writing by Bindu Rai, editing by Seban Scaria)
