ZAWYA: Saudi’s Al Rajhi Bank prices $1bln non-call T2 social sukuk

-2.05%

-1.30%

-0.12%

-0.29%

ALRAJHI 1120.SA	95.60	-2.05%
Tadawul All Shares Index TASI.SA	10452.91	-1.30%
ALBILAD SOVEREIGN SUKUK ETF 9403.SA	8.49	-0.12%
ALINMA GOVERNMENT SUKUK ETF 9404.SA	10.43	-0.29%

First published: 10-Sep-2025 10:03:58

Staff Writer

Saudi Arabia’s Al Rajhi Bank rated Aa3/A/A− (Moody’s/S&P/Fitch) has priced its $1 billion Tier 2 Reg S sukuk at a profit rate of 5.651% at par.

The reset margin is at 200 bps over US Treasuries. The initial price thoughts were in the 235 bps area.

The 10.5-year non-call 5.5-year Tier 2 social sukuk had an order book that exceeded $1.6 billion, excluding JLM interest, at launch.

Al Rajhi Bank said the wakala sukuk structure will come under its $10 billion international trust certificate issuance programme.

The expected issue rating is Baa2 by Moody’s / BBB by Fitch, with an issue date of September 16.

The bank mandated Al Rajhi Capital Company, Crédit Agricole Corporate and Investment Bank, Citigroup Global Markets Limited, DBS Bank Ltd., Goldman Sachs International, HSBC Bank, JP Morgan Securities plc, MUFG Securities EMEA, Natixis, Nomura International, and Standard Chartered Bank as Joint Lead Managers and Bookrunners.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com

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