Alinma closes twin tier-1 issuances as corporate issuers move in

The sukuk market is still picking up pace, as big banks and companies rush to lock in funding.

#1- Alinma Bank raised SAR 3 bn from an SAR-denominated AT1 sukuk issuance worth SAR 3 bn. This issuance is part of its SAR 5 bn program and offers an annual return of 6.50%. The bank tapped Alinma Capital and HSBC Saudi Arabia as joint lead managers of the domestic tranche.

#2- The lender also tapped global markets to close a USD 500 mn of USD-denominated sustainable AT1 sukuk issuance. The green instruments carry a 6.625% yield, and are set to list on the London Stock Exchange.

ADVISORS-The bank tapped Abu Dhabi Islamic Bank, Alinma Capital, Arqaam Capital, ASB Capital, Citi, DBS Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs, JPMorgan, Mashreq, Standard Chartered, and Warba Bank as joint lead managers.

#3- Corporate issues are riding the same wave: Red Sea International Company’s board approved a new SAR 300 mn SAR-denominated sukuk program. The developer intends to use the capital to support operational requirements and optimize its financing structure.

ADVISORS-The company tapped Sukuk Capital as the arranger for the program.

REMEMBER- Red Sea International had posted a net income of SAR 2.5 mn in 1Q 2026, up from a net loss of SAR 11.2 mn recorded in the same period the previous year. However, its revenue dropped around 10% y-o-y to SAR 631 mn during the quarter on the back of slower execution of projects.