Tadawul-listed Saudi National Bank (SNB) plans to issue USD-denominated tier 2 capital debt instruments under its euronotes medium-term program, SNB said in a disclosure to Tadawul. The issuance is set to be carried out through a special purpose vehicle and will be offered to qualified investors both inside and outside the Kingdom.

The details: The value of the issuance has yet to be announced and is expected to be determined alongside the terms of the issuance at a later stage based on market conditions. The bank intends to issue the instruments for the "improvement of tier 2 capital,” as well as for “general corporate purposes and to fulfill the SNB’s financial and strategic objectives.”

ADVISORS: Abu Dhabi Commercial Bank, DBS Bank, Emirates NBD, Goldman Sachs, HSBC, JP Morgan Securities, Mashreq bank, Mizuho International, SNB Capital, SMBC Nikko Capital Markets, and Standard Chartered will act as joint lead managers and joint bookrunners for the potential offering.

SNB has been active in the debt market as of late: SNB has recently closed a SAR-denominated additional tier one (AT1) perpetual sukuk offering, raising SAR 1.73 bn from local investors. The offering, which kicked off in early May, was open to both institutional and qualified investors in the Kingdom.

More in the pipeline: Bank Albilad is currently planning a USD-denominated AT1 sukuk under its USD 2 bn program. Meanwhile, Cenomi Centers is gearing up to issue up to SAR 3.75 bn in sukuk.

REMEMBER- As of March 2025, Saudi Arabia’s total direct debt reached SAR 1.33 tn (USD 354.3 bn), with SAR 797.1 bn (USD 231.6 bn) in domestic debt and SAR 531.7 bn (USD 141.8 bn) in external debt, according to recent data from the National Debt Management Center. This marks a 9.3% increase from the previous year, highlighting the ongoing expansion of the Kingdom's debt portfolio.

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