Saudi National Bank’s Debut Sustainable Sukuk Receives High Demand

Saudi National Bank’s Debut Sustainable Sukuk Receives High Demand

https://islamicmarkets.com/articles/saudi-national-bank-s-debut-sustainable-sukuk-receives-high-demand
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The debut sustainable Sukuk issued by Saudi National Bank (SNB) has received high investor interest, enabling a USD 750 million sale after demand reached USD 3.2 billion on the 12th of January 2022. According to a bank document, the five-year Sukuk tightened from an initial guidance price of around 110 basis points (bps) over U.S. Treasuries (UST) to launch at 85 bps over UST.

Why it Matters?

Environmental, social and governance (ESG) related debt instruments like sustainable Sukuk or green bonds are forecasted to grow further in the Gulf region as governments are keen on meeting the swelling demand from ESG conscious investors. Other companies in the region are expected to contribute to the sector including Abu Dhabi solar energy firm, Sweihan PV Power...