Al Rajhi Bank, Arab National Bank, and Banque Saudi Fransi (BSF) are each out with sukuk-related news this morning.

#1- Al Rajhi Bank is mulling a USD-denominated additional tier 1 (AT1) sustainable sukuk issuance, under its international borrowing program, it said in a disclosure to Tadawul. The issuance will be open to both local and international investors. Proceeds will be used to fund the bank’s general corporate purposes. The sukuk will be priced and structured based on market conditions.

SOUND SMART- AT1 bonds act as a capital cushion for banks if their capital levels fall below a certain threshold. They are seen as the riskiest debt instruments that can be issued by lenders and therefore hold a higher coupon.

ADVISORS- Our friends at HSBC and Mashreq are joint lead managers and bookrunners on the transaction, along with JPMorgan Securities, Morgan Stanley, Al Rajhi Capital, Citigroup Global, Emirates NBD, Goldman Sachs, Dubai Islamic Bank, Credit Agricole, MUFG Securities EMEA, SMBC Bank International and Standard Chartered Bank.

REMEMBER- The leading Islamic lender tapped the debt market with USD-denominated issuances twice last year — in March and May.

ARAB NATIONAL BANK-

#2- Arab National Bank (ANB) is planning to issue a SAR-denominated sukuk via private placement under its SAR 11.25 bn additional tier 1 capital sukuk program, it said in a filing to Tadawul. Proceeds will go towards supporting ANB’s capital base and covering its general corporate expenses. The size and rates for the offer, which is pending regulatory approval, will be determined based on market conditions.

ADVISORS- HSBC Saudi Arabia and ANB Capital were tapped as joint lead managers for the issuance.

BANQUE SAUDI FRANSI-

#3- Banque Saudi Fransi (BSF) is set to issue USD-denominated sukuk, after securing regulatory approval, under its shariah-compliant trust certificate issuance programme, according to a disclosure to Tadawul. The size and terms of the sukuk — which will be issued via special purpose vehicle — will be determined subject to market conditions.

ADVISORS- Our friends at HSBC were appointed as global coordinator for the issuance, while Mashreq, Abu Dhabi Commercial Bank, Citigroup Global, Crédit Agricole Corporate and Investment Bank, Emirates NBD, Goldman Sachs, the Islamic Corporation for the Development of the Private Sector, Mizuho International, SMBC Bank International, and Saudi Fransi Capital were selected as joint lead managers.

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