Al Rajhi Bank Completes the Issuance of its USD 1.7 Billion Tier 1 SAR-Denominated Sukuk

Saudi Arabia’s Al Rajhi Bank has announced the completion of its SAR 6.5 billion (USD 1.7 billion) SAR-denominated Tier 1 Sukuk through a private placement.

Why it Matters?

The bank first announced the Sukuk in a bourse filing dated 3rd of January 2022 with an undetermined amount and set to only be offered and sold in Saudi Arabia as it is limited to institutional or qualified clients. The par value for the issuance has been set at SAR 1 million (USD 26.6 million) with perpetual maturity, while the return is at 3.5% per annum fixed rate, payable quarterly from the date of issue excluding the reset date, after which it would be reset on the reset date.

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