One of the world’s prominent Islamic banks, Al Rajhi Bank has announced its plans to issue U.S. dollar-denominated additional Tier 1 capital sustainable sukuk under its international sukuk programme established in April 2024. The issuance aims to strengthen the Bank’s Tier 1 capital and support its strategic and financial objectives in line with its Sustainable Finance Framework.
The Sukuk will be issued through a special-purpose vehicle and offered to eligible investors within Saudi Arabia and internationally. The terms and amount of the sukuk will be finalised based on market conditions, with the issuance subject to regulatory approvals and compliance with relevant laws and regulations.
Established in 1957, Al Rajhi Bank is one of the world’s largest Islamic banks and a major financial institution in the Kingdom of Saudi Arabia. The Bank has been at the forefront of integrating Sharia-compliant principles with modern banking practices to offer innovative financial solutions.
The Bank has engaged leading global financial institutions, including Citigroup Global Markets Limited, HSBC Bank plc, and Goldman Sachs International, as joint lead managers and book runners for the Sukuk issuance.
Al Rajhi Bank confirmed that regulatory authorities require it to make further announcements regarding the sukuk, including any material developments. This issuance underscores the Bank’s ongoing efforts to align its financial strategies with global sustainable finance practices.
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