Al Rajhi Bank Announces the Commencement of its Tier 1 SAR-Denominated Sukuk

Saudi Arabia’s Al Rajhi Bank has announced the issuance of its SAR-denominated Tier 1 Sukuk through a private placement. The bank said in a bourse filing dated 3rd of January 2022 that the amount and terms of offer of the Sukuk will be determined subject to market conditions.

Why it Matters?

The Sukuk may only be offered and sold in Saudi Arabia as it is limited to institutional or qualified clients, in accordance with Article 8 of the Rules of the Offer of Securities and Continuing Obligations. The minimum subscription amount and par value are set at SAR 1 million (USD 26.6 million) with perpetual maturity, while the offer price and return are both also subject to market conditions.

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