Saudi Investment Bank secures $750 mln in first USD Tier 1 sustainable sukuk issuance

The Saudi Investment Bank completed the debut offering of its USD-denominated Tier 1 Sustainable Sukuk Issuance of $750 million on November 21, under its $1.5 billion Additional Tier 1 Sukuk Program. The offering marks the first ever USD Tier 1 sustainable offering by the bank in the international capital markets.

The offering received significant interest from international, Saudi and GCC investors, resulting in one of the highest oversubscriptions of the order book. The offering achieved one of the highest international distributions from Europe, Asia, US offshore and the Middle East. This resounding success is a testament to the market’s confidence in the bank’s credit worthiness and strategic direction. The funds raised will be used to enhance the bank’s liquidity and support the growth of its balance sheet, and will be allocated to financing and refinancing eligible projects under the bank’s sustainable finance framework, and inline with the goals and vision of Saudi Arabia’s Vision 2030.

Salman Bader al-Fughom, Deputy Chief Executive Officer of The Saudi Investment Bank said: “I would like to thank the investor community for the overwhelming confidence shown in The Saudi Investment’s Bank. This Sustainable Sukuk Issuance is a strategic step in enhancing our financial framework. It aligns with our commitment to sustainability and reinforces our position as a leader in responsible banking practices. This issuance not only broadens our investor based but also sets a benchmark for future bond issues in the region.”

The offering will be settled on November 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market (ISM). The sukuk will be offered, sold, and delivered outside the United States exclusively through offshore transactions to non-US persons, in accordance with Regulation S of the US Securities Act of 1933, as amended.

Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital), Standard Chartered, HSBC Bank plc, Citigroup Global Markets Ltd, J.P. Morgan Securities, Goldman Sachs International, Arqaam Capital, MUFG Securities EMEA acted as the joint lead managers and book runners for this Issuance. ASH Clifford Chance and A&O Shearman acted as the legal advisors. Standard Chartered Bank acted as the Sole Sustainability Structurer.