Arab National Bank joins sustainable sukuk rush with new issuance

ANB wraps up AT1 sukuk sale: Tadawul-listed lender Arab National Bank (ANB) closed a USD 750 mn AT1 sustainable sukuk, after opening earlier this week to both local and international investors, according to a bourse disclosure. Settlement is slated for Tuesday, 9 September. The perpetual notes carry a 6.4% coupon, a five year call option, and will be listed on the London Stock Exchange. The Reg S-compliant sukuk falls under ANB’s AT1 capital sukuk program.

ICYMI- ANB last raised SAR 3.35 bn in a sukuk offering via private placement in February under its SAR 11.35 bn AT1 capital sukuk program.

THE BIGGER PICTURE- Saudi banks are ramping up activity in the green capital markets. Just lastweek, BSF wrapped up a USD 1 bn Tier 2 issuance, while SAB and Alinma also tapped the market with USD 1.25 bn and USD 500 mn deals, respectively.

ADVISORS- Our friends at HSBC acted as joint lead managers and bookrunners, alongside ANB Capital, Arqaam Capital, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, Kamco Investment, Merrill Lynch International, SMBC, and Standard Chartered.