Saudi National Bank has raised SAR 3.30 billion ($880 million) in a riyal-denominated sukuk issuance that was priced at 5%.

The 3,300 additional Tier 1 perpetual sukuk, which closed today had a par value of SAR 1 million, the bank said in a statement on Tadawul on Thursday.

The yield on the Islamic bond is 5%. If the sukuk are not redeemed or purchased on or prior to 15 September 2027, the rate of return will then be reset on such date and every five years thereafter, according to the term sheet.

SNB Capital Company was the sole lead manager, bookrunner, and lead arranger for the issuance.

Sukuk issued in kingdom reached $25.1 billion in the first half of 2022, up 95% from $12.9 billion issued during the same period in 2021.

Domestic sukuk issued by Saudi corporates in the first half of 2022 reached $3 billion, a 168% increase from $1.1 billion a year prior.

(Writing by Brinda Darasha; editing by Seban Scaria)