• Emirates NBD was a Joint Lead Manager and Joint Bookrunner 

Dubai:  Emirates NBD, a leading banking group in the Middle East, North Africa and Turkey (MENAT) region, has successfully priced a USD 1 billion Senior Unsecured Sustainable Sukuk for Al Rajhi Bank, the world’s largest Islamic bank by assets and market capitalisation.  

The 5-year Sukuk which priced at an reoffer yield of 4.774% generated strong demand, attracting orders of over USD 3.75 billion. The robust order book allowed Al Rajhi to tighten the pricing by 40 basis points to 5-year US Treasury + 110bps from an initial price guidance of 150 basis points. The Sukuk was strongly anchored by Middle Eastern investors, who accounted for 49% of the allocation. The issue also witnessed strong demand from high quality international investors.

The Sukuk was issued under Al Rajhi’s USD 4bn Trust Certificates Program, which was established in April 2022. The proceeds will be used to finance and refinance, in whole or in part, Eligible Sustainable Projects, as set out in the Bank’s Sustainable Finance Framework. The issue represents the first debt capital market transaction by a financial institution in Central & Eastern Europe, Middle East and Africa following the recent volatility in the global banking sector.

Waleed Almogbel, Managing Director and CEO of Al Rajhi Bank said: “The success of this debut Sukuk issuance in these turbulent times reflects the confidence of investors in Al Rajhi Bank and the Kingdom’s solid foundations. We are proud to present the bank’s commitment to Sustainable financing as we look to diversify our funding strategy and are grateful for the support of our local and international investors as part of the large engagement we received during the marketing process for this Sukuk. We also look forward to publishing our annual Allocation and Impact report which will allow investors to further understand the environmental and social benefits this Sukuk transaction will create.”  

Mohammad Al Bastaki, CEO of Emirates NBD Capital, said: “We are pleased to have led the successful closing of Al Rajhi’s debut sustainable Sukuk amid a volatile market environment. We pride ourselves on the confidence our clients have in our ability to support their complex needs with innovative solutions, a testament to our long history of excellence in the region’s debt capital markets. Emirates NBD remains committed to taking the lead in providing a dynamic suite of sustainable financing solutions amid increasing demand from regional and global clients.”

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About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Turkey) region with a presence in 13 countries, serving over 17 million customers. As at 31st December 2022, total assets were AED 742 billion, (equivalent to approx. USD 202 billion). The Group has operations in the UAE, Egypt, India, Turkey, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 879 branches and 4,130 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.6 billion. 

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv., the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is also an early supporter to Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.

For further information on Emirates NBD, please contact:
Ibrahim Sowaidan
Senior Vice President
Head - Group Corporate Affairs
Emirates NBD
e-mail: ibrahims@emiratesnbd.com

Mahmoud Kassem
Director
Brunswick Group
e-mail: mkassem@brunswickgroup.com