Al Rajhi Bank has closed USD 1 bn from its USD-denominated sustainable sukuk offering, it said in a disclosure to Tadawul. This is the first time that the leading Islamic lender tapped the debt market this year.

Breaking it down: It sold a total number of 5k bonds at a par value of USD 200k each, according to the disclosure. A document seen by Reuters showed the bank selling the sukuk at 90 bps over benchmark US Treasuries, tighter than an initial price guidance of 120 bps. The sukuk sale saw orders topping USD 2.8 bn.

Where the funds are going: Proceeds will be earmarked to support the bank’s financial and strategic objectives in line with its sustainable finance framework, it said in an earlier this week.

ADVISORS- Al Rajhi Bank hired our friends at HSBC, along with Al Rajhi Capital, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citigroup Global Markets, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank as joint lead managers and bookrunners for the transaction. Its advisors list also includes Goldman Sachs, KFH Capital Investment, SMBC Capital Markets, Société Générale and Standard Chartered Bank.

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