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Saudi Investment Bank (SAIB) has begun offering Additional Tier 1 capital sustainable 5-year perpetual non-call mudaraba sukuk to Saudi and global investors.
The yield was set at 6.375%, narrowing from initial price thoughts (IPTs) in the 6.875% area.
The bank has mandated Alistithmar for Financial Securities and Brokerage Company, Citigroup Global Markets Limited, HSBC Bank plc, J.P. Morgan Securities plc, Goldman Sachs International, MUFG Securities EMEA plc, Arqaam Capital Limited and Standard Chartered Bank as joint lead managers and bookrunners.
The investor calls and meetings began in London on Monday, 18 November 2024.
Books for the muradaba sukuk are currently over US$4 billion, excluding joint lead manager interest.
The size of the offering is expected to be $500-$750 million.
The bank is rated A3 by Moody’s, A- by Fitch and BBB by S&P.
The sukuk is being issued under the $ 1.5 billion Additional Tier 1 Capital Certificate Issuance Programme established by SAIB Tier 1 Sukuk Limited with SAIB acting as obligor.
The sukuk will be listed on the London Stock Exchange.
(Writing by Brinda Darasha; editing by Daniel Luiz)
