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The deluge of regulatory capital issuances in the Kingdom continues as Banque Saudi Fransi (BSF), Alinma, and Saudi Awwal Bank (Sab) tap global and regional debt markets to shore up their buffers. All of the issuances are Reg S-compliant and are listed on the International Securities Market of the London Stock Exchange.
#1- BSF closed a USD 1 bn T2 issuance with a 5.761% annual return, according to adisclosure. The bond, which was open to both local and international investors and carried a 10-year maturity and a five-year call, falls under the bank’s medium-term note program.
SOUND SMART- AT1 instruments are designed to absorb losses, while the bank continues to operate normally, strengthening core capital. T2 notes, which usually carry fixed maturities, provide an extra layer of protection by absorbing losses if a bank becomes non-viable. AT1 and T2 issuances are central to meeting Basel III capital adequacy standards, helping Saudi banks maintain resilience as credit demand and regulatory expectations rise.
ADVISORS- BSF tapped our friends at HSBC and Mashreq, alongside Abu Dhabi Commercial Bank, Citigroup Global Markets, DBS Bank, Emirates NBD Bank, Mizuho International, and Saudi Fransi Capital as joint lead managers on the transaction.
#2- Alinma Bank kicked off the offering of its USD-denominated sustainable AT1 capitalnotes, according to a disclosure. The issuance falls under the bank’s AT1 program and is open to eligible investors in the Kingdom and abroad. This comes a little over a month after Alinma closed a USD 500 mn sukuk issuance.
About the bonds: The offering closes today and will see the size and pricing determined based on market conditions. The certificates carry a minimum subscription rate of USD 200k, with increments of USD 1k thereafter, and are structured as perpetual instruments callable after 5.5 years.
ADVISORS- Alinma tapped Abu Dhabi Islamic Bank, Alinma Capital, Dubai Islamic Bank, Emirates NBD, Goldman Sachs International, JP Morgan Securities, and Standard Chartered as joint lead managers.
#3- Sab launched the offering of its USD-denominated T2 green notes, according to adisclosure. The issuance comes under the bank’s medium-term note program and is open to eligible investors in Saudi Arabia and abroad. This comes a little under a month after Sab closed a SAR 2 bn local AT1 offering.
The deets: The offering closes today, with the size and pricing set to be determined in line with market conditions. The 10-year notes carry a minimum subscription rate of USD 200k, with increments of USD 1k thereafter, and are callable after five years.
ADVISORS- The bank appointed our friends at HSBC and Mashreq as joint lead managers, alongside Goldman Sachs International, Abu Dhabi Commercial Bank, Citigroup, DBS, Emirates NBD, Mizuho International, and Société Générale.
