Saudi Awwal Bank (Sab) raised SAR 2 bn via an additional tier one (AT1) perpetual sukuk offering through a private placement, according to a disclosure to Tadawul. The SAR-denominated offering, which kicked off earlier this month, was open to both institutional and qualified investors in the Kingdom.

About the securities: The sukuk carry a 6.3% annual return and are structured as perpetual instruments, meaning they have no fixed maturity. The Islamic bonds are callable, allowing Sab to redeem them early under certain conditions outlined in the base offering circular and applicable final terms. Proceeds will support the bank’s capital position in line and support its long-term strategic goals.

ADVISORS- Our friends at HSBC Saudi Arabia were the sole lead managers.

ALSO FROM SAUDI AWWAL BANK-

NDF lines up SAR 5.5 bn credit facility: The National Development Fund (NDF) signed a credit facility agreement worth SAR 5.5 bn with Sab and Riyad Bank to help finance development projects across the Kingdom, it said in a post on X.

Where will the money go? The facility is set to support the work of the fund’s 12 affiliated development banks and funds, accelerate job-creating projects, promote private sector participation, and support economic diversification, according to the fund.

ICYMI- The fund also inked a credit facility agreement worth SAR 5 bn earlier this month with Al Rajhi Bank and Arab National Bank.

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