Islamic lender Al Rajhi Bank of Saudi Arabia has now booked its benchmark-sized US dollar Additional Tier 1 (AT1) social sukuk, initial price thoughts (IPTs) priced around at 6.625 percent.
The perpetual non-call six-year (PNC6Y) sukuk is issued in the Al Rajhi Tier 1 Sukuk Limited AT1 capital certificate issuance programme up to $5 billion. It is organized as a structure based on mudharaba, and will be offered in Regulation S format only.
The certificates will be given ratings of Baa3 by Moody’s, while the obligor, Al Rajhi Banking and Investment Corporation, holds ratings of Aa3 (Moody’s), A (S&P), and A (Fitch), all with stable outlooks.
However, the proceeds will be used to fund or refinance qualified social projects within the Al Rajhi Sustainable Finance Framework.
Major bookrunners and joint lead managers are Al Rajhi Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs, HSBC, Mashreq, Morgan Stanley, Nomura, Standard Chartered, and Warba Bank.
Meanwhile, Standard Chartered is the only sustainability structurer. The certificates will be listed on the London Stock Exchange’s International Securities Market.
