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Saudi National Bank’s Sukuk: Jump-starting the year

The Kingdom’s largest lender Saudi National Bank (SNB) has raised US$750 million through its first Sukuk issuance of 2022.

The Islamic paper, which is parked under SNB’s international Sukuk program established in November 2021, is the bank’s first issue of the year, and that on the heels of the official completion of the merger of its parent companies National Commercial Bank and Samba Financial Group.

The five-year facility holds a profit rate of 2.34%, and will be listed on the London Stock Exchange.

Proceeds from the issuance will be used for “general corporate purposes and to fulfill the bank’s financial and strategic objectives,” SNB said.

According to Reuters, the Sukuk facility was the bank’s debut sustainable Sukuk issuance, receiving a demand of US$3.2 billion. The funds raised will reportedly be used for projects eligible under the bank’s sustainable finance framework, including renewable energy-generating facilities and loans related to green projects.

SNB is indirectly owned by the Saudi government, with a shareholding of 50.4%. The bank is the resulting entity from the Kingdom’s largest banking merger held in April 2021, with SNB holding over US$239 billion in assets.

Saudi National Bank’s Sukuk
US$750 million

13th January 2022
Issuer SNB Sukuk
Offer type US dollar-denominated senior unsecured Sukuk
Number of Sukuk units 3,750 (based on the minimum denomination and total issue size)
Par value US$200,000
Profit rate 2.34%
Maturity Five years
Listing London Stock Exchange
Rating ‘A-’/’F1’ for the trust certificate issuance program, by Fitch Ratings
Joint lead managers and bookrunners Citigroup Global Markets; Emirates NBD; Goldman Sachs International; HSBC Bank; Mizuho International; SNB Capital Company

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