RIYADH: The Saudi banking sector is seeing an increase in debt and sukuk market activity as prominent financial institutions seek to bolster their capital bases and support strategic expansion projects. Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are among the prominent companies launching large issuances to attract both domestic and foreign investors.
This surge in activity contributes to the Capital Market Authority’s goal of converting the Kingdom’s investment market into a critical pillar of its economy, as defined in Vision 2030. The plan focusses on extending finance choices, developing funding opportunities, and attracting international investors. Al Rajhi Bank announced plans to issue US dollar-denominated extra Tier 1 capital sustainable sukuk through its international sukuk program, which was launched in April.
According to a statement by the Saudi stock exchange, the offering, which was approved by the bank’s board in March, will be carried out through a special purpose vehicle and offered to suitable investors in Saudi Arabia and internationally. The bank has appointed a consortium of renowned financial institutions, including Citigroup, HSBC, and Goldman Sachs, as joint lead managers and bookrunners for the proposed offering.
Banque Saudi Fransi also announced plans to offer US dollar-denominated certificates through its Trust Certificate Issuance Program. The project is the result of a board resolution that gives senior management the ability to oversee the program and issue new documents as needed.
Also Read:
Hayy Matsuri Honors Saudi and Japanese Cultural Customs
March Will See the Trial of a Franco-Algerian Influencer
