Banque Saudi Fransi (BSF) raised SAR 2.5 bn through an additional tier 1 (AT1) sukuk issuance via private placement, it said in a disclosure to Tadawul. The transaction, which kicked off late last month and closed earlier this week, falls under the bank’s SAR 8 bn AT1 capital sukuk program and was arranged solely by Saudi Fransi Capital.

About the offering: The perpetual sukuk offering carries a 6.4% annual return. The sale included 2.5k certificates at a par value of SAR 1 mn each, offered to qualified and institutional investors. Proceeds will be used to top up the bank’s capital reserves.

ICYMI- The issuance comes days after BSF redeemed its SAR 5 bn AT1 sukuk from 2020 at its first call date. The lender last tapped the debt market in August when it closed a USD 1 bn T2 issuance with a 5.761% annual return.

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