A good day for sukuk: Al Rajhi Bank and Banque Saudi Fransi completed their additional tier 1 (AT1) USD-denominated sukuk issuances, both announced earlier this week, totaling USD 2.25 bn.

#1- Al Rajhi Bank closed its USD 1.5 bn sukuk offering yesterday, it said in a disclosure to Tadawul. The offering saw 7.5k sukuk sold at a 6.25% annual return, with a USD 200k buy-in minimum. Subscriptions kicked off on 14 January and wrapped up yesterday, with settlement scheduled for Tuesday, 21 January.

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More on the offering: The offering is perpetual, meaning there is no fixed maturity date. However, the sukuk are callable after five years under specific terms defined in the terms sheet. Proceeds from the sale will bolster the bank’s financial base and support initiatives under its Sustainable Finance Framework.

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.

IN OTHER DEBT NEWS-

#2- Banque Saudi Fransi completed its USD 750 mn sukuk offering, it said in a disclosureto Tadawul. The sale consisted of 3.75k sukuk, each valued at USD 200k. The certificates have an annual return of 5.375% and a five-year tenor, but may be redeemed prior to that date under terms. Settlement took place yesterday.

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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