Saudi British Bank Completes SAR 5 Billion Sukuk Offering

Saudi British Bank (SABB) announced the completion of its SAR 5 billion Tier II Sukuk, via private placement. This makes SABB’s first transaction in the debt capital market as a merged bank, having legally finalised its merger with Alawwal Bank on the 16th of June 2019.

According to media reports, the Sukuk will offer a return based on the current lending price (Saudi Arabian Interbank Offered Rate), for six months, alongside a 195 basis point profit margin. Callable on the 22nd of July 2025, the Sukuk is expected to mature on the 22nd of July 2030.

Having received approval from SABB’s Shariah committee, the structure of the Sukuk is wholly compliant with the Saudi Arabi...