Riyadh, KSA: SNB Capital today announced the successful completion of a private placement of Additional Tier 1 (AT-1) perpetual sukuk worth SAR 1.0 billion. Testament to the robust credit fundamentals of SNBC, the transaction was well received with overwhelming demand having a bid cover ratio of 2.1 times from a diverse investor base that included financial institutions, public sector, qualified individual investors, corporates, family offices, asset managers and insurance companies. The issuance, which is non-call for five years, was priced a fixed annual coupon rate of 5.80% with quarterly payment until the first call date.

Rated A3 by Moody’s (with Stable outlook), SNB Capital (SNBC) is the first Capital Market Institution (CMI) in the Kingdom of Saudi Arabia; affirming SNBC’s robust operating model and serving to underscore the strategic importance of SNBC to its parent company, Saudi National Bank Group (SNB). SNBC and SNB retain a strong operational link, in addition to an often-shared customer base which benefits from the strong product offering of SNBC.  

Mr. Ammar Alkhudairy, the Chairman of SNBC, said: “SNB views its subsidiary SNBC as a strategically important component of the bank that fulfils a shared objective of being an all-inclusive solutions provider to our customer base. This issuance by SNBC is a pioneering endeavor that compliments and supports SNB’s group vision of being the premier financial services group in the region​ that provides seamless banking and capital markets support to the Kingdom’s ambitious growth plans”

Mr. Rashid Sharif, Chief Executive Officer of SNBC, commented: “We are committed to providing innovative financing solutions and constantly developing unique deals and products across our service lines to meet the evolving investment needs of the market. The successful completion of this first of its kind transaction highlights our focus on developing unique offerings. The issuance further strengthens our capital base to continue our journey supporting the development of the Saudi Capital Market guided by Vision 2030 strategic goals and objectives.”

-Ends-

About SNB Capital

SNB Capital is a leading regional financial institution with deep industry expertise across four business lines: Asset Management, Wealth Management, Securities, and Investment Banking. Headquartered in Saudi Arabia, SNB Capital is a market leader with SAR 251 billion of assets under management as of December 2021, with a mission to contribute to economic growth and offer innovative financial solutions that create lasting value for clients. As an investment banking powerhouse, SNB Capital develops and connects unique financial opportunities across the globe.

Further information is available at www.alahlicapital.com Follow SNB Capital on Twitter @Capital_SNB. 

Media Contact:
Hill+Knowlton Strategies
Andrea Benton, Group Account Director, +971 52 908 8499
Email: SNBCap@HKstrategies.com