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Riyadh-based Saudi Awwal Bank (SAB) has begun issuing a Saudi riyal-denominated Additional Tier 1 sukuk by way of private placement in the kingdom.
The size and yield of the perpetual dual tranche sukuk—with fixed rate and floating rates—will be determined later. The offering closes on 5 December, 2024.
Minimum subscription has been set at SAR1 million ($266,666).
The bank has mandated HSBC Saudi Arabia as the sole lead manager to the issuance. The global banking group owns a minority stake in Awwal Bank.
The bank is rated A2 with stable outlook by Moody’s and BBB+ with stable outlook by Fitch Ratings. It posted a net profit of SAR 1.88 billion for Q3 2024, 3% higher year-on-year.
(Writing by Brinda Darasha; editing by Seban Scaria)
