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Saudi National Bank

Issues debut sustainable sukuk

Issuance Details

  • Company: audi National Bank
  • Rating (Fitch): A1 / A- / A
  • Sector: Financial
  • Market: ISM

Transaction Details

  • Issue Date: 19 January 2022
  • Issue Size: $750 million
  • Coupon: 2.34 %
  • Maturity: 5 years

Saudi National Bank completes issuance of $750 million sukuk

  • Saudi National Bank (SNB) is the largest financial institution in Saudi Arabia. It plays a vital role in supporting the economic renewal of Saudi Arabia through transformation of the banking sector and facilitating the delivery of Saudi Arabia’s Vision 2030
  • In January 2022, SNB sold $750 million of its debut sustainable sukuk, with demand topping $3.2 billion
  • The five-year Islamic bond was issued on London’s International Securities Market (ISM) at an annual yield of 2.34%.
  • Proceeds from the sale will be used for projects eligible under the bank’s Sustainable Finance Framework such as funding renewable energy facilities, including loans to develop such projects and loans related to tree-planting
  • HSBC was the sole ESG structuring agent on SNB’s sukuk sale and was joined on the deal by Citi, Emirates NBD Capital, Goldman Sachs, Mizuho
  • Securities and SNB Capital

Source: London Stock Exchange, Refinitiv, May 2022