Saudi Arabia’s banking sector sees rise in activity in debt, sukuk markets
Date
1/14/2025 1:49:21 AM
(MENAFN) banking sector in Saudi Arabia is seeing a notable rise in activity in debt and sukuk markets as major economic institutions turn to enhancing their capital bases and finance strategic expansion projects.
Among the leading figures declaring significant issuances to take advantage of regional and global investors are Al Rajhi Bank, Banque Saudi Fransi, as well as Arab National Bank.
As mentioned in Vision 2030, this trend in activity boosts the Capital market Authority’s goal of altering the Kingdom’s investment market into a major support of the its economy. The strategy highlights increasing financing solutions, sponsoring funding options, as well as appealing overseas investors.
Al Rajhi Bank revealed strategies to issue US dollar-denominated extra Tier 1 capital maintainable sukuk as part of its international sukuk program launched in April.
According to a statement on the Saudi stock exchange, the issuance, approved by the bank’s board in March, will be carried out through a special purpose vehicle and offered to eligible investors both in Saudi Arabia and internationally.
The bank has engaged a consortium of top financial institutions, including Citigroup, HSBC, and Goldman Sachs, to serve as joint lead managers and bookrunners for the planned issuance.
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