Saudi sukuk market is waking up from war-driven slumber.

The Saudi sukuk market appears to be awakening from its war-driven slumber. Saib and Alinma are leading the return of AT1 issuances by banks, while smaller players like Intelligent Oud are confident enough to announce their own sukuk offerings.

#1- Saib: The Saudi Investment Bank (Saib) completed an SAR-denominated AT1 sukuk offering worth SAR 1.85 bn yesterday. The annual return on the 1.85k sukuk sold under the issuance was set at 6.5%.

ADVISORS- Alistithmar for Financial Securities and Brokerage Company and Al Rajhi Capital are handling the placement as joint lead managers and bookrunners.

#2- More on the way from Alinma: Alinma Bank kicked off another SAR-denominated AT1 sukuk issuance yesterday, with a minimum subscription and par value both set at SAR 1 mn, according to its Tadawul disclosure. The offer is part of its SAR 5 bn AT1 sukuk program through private placement.

ADVISORS- Alinma Capital and HSBC Saudi Arabia were appointed joint lead managers for Alinma’s potential private placement.

#3- Smaller players are also moving forward with their debt plans: Intelligent Oud Company plans to launch a public sukuk offering and list the instruments on the sukuk and bond markets, according to another disclosure. The offering will be open to both retail and institutional investors, with Impact46 as financial advisor and sole arranger for the transaction.

Why it matters

The return of issuances signals that institutional appetite for GCC debt is recovering despite regional volatility, pushing the regional market out of its wartime freeze. This could lead to a gradual recovery in foreign investment sentiment across multiple sectors, especially as the ceasefire and peace negotiations continue.

There are signs that debt instruments are gaining momentum across the GCC. Emirates NBD priced its USD 750 mn issuance 50 bps tighter than its initial guidance, marking the first entry by a GCC player into debt markets since the war began.