Skip to content Skip to Search
Skip navigation

Saudi’s Al Rajhi Bank plans dollar sustainable sukuk

Abu Dhabi wealth fund Mubadala has $276bn in assets under management Reuters/Dado Ruvic
Abu Dhabi wealth fund Mubadala has $276bn in assets under management

Al Rajhi Bank is planning to issue US dollar-denominated sustainable Islamic bond, as part of its international sukuk programme launched last year.

Al Rajhi Capital, Citigroup Global Markets Limited, Emirates NBD, Goldman Sachs, HSBC, JPMorgan, KFH Capital and Standard Chartered are joint lead managers and bookrunners for the sukuk issuance, the Saudi-listed bank said in a statement.

The offer amount and terms will be determined depending on the market conditions, the bank said.

Reuters reported, citing a bank presentation, that the issuance will be of benchmark size, which typically means at least $500 million.

The sukuk will finance or refinance sustainable projects eligible under the bank’s sustainable finance framework.

In November 2022, Al Rajhi Bank completed the issuance of SAR 10 billion ($2.6 billion) Tier 1 SAR-denominated sukuk.

In February, the Saudi sovereign Public Investment Fund (PIF) raised $5.5 billion through its latest green bond issuance, supporting expectations of a strong year for sustainable bonds in the Middle East.

The issuance was more than six times oversubscribed – with books exceeding $33 billion – and will be used to finance or refinance eligible green projects in accordance with PIF’s Green Finance Framework.

S&P ratings agency said recently that the Middle East will continue to see “a strong pipeline” of green, social, sustainable, and sustainability-linked bond (GSSSB) issuance in 2023.

Dennis Sugrue, senior director at S&P Global Ratings, added that in 2023 “global GSSSB issuance will return to growth, reaching $900 billion to $1 trillion, nearing the record $1.06 trillion in 2021″.

Latest articles

reducing inflation Egypt Mohamed Maait finance minister

Reducing inflation is Egypt’s top priority, says minister

Reducing inflation in Egypt to align with the central bank’s target is the government’s main priority, the country’s finance minister, Mohamed Maait, has announced. Inflation in Egypt fell to 33 percent in March from 38 percent in September, passing the central bank’s target range of a 5 to 9 percentage point fall. Maait, speaking at […]

The Khazna facility will raise utility Ewec’s total installed solar PV capacity to 5.5 gigawatts

Developers sought for Abu Dhabi’s Khazna solar plant

Emirates Water and Electricity Company (Ewec) is seeking developers to build a 1,500 megawatt solar power facility in Abu Dhabi as the emirate ramps up its green energy drive. The utility has issued a request for proposals to qualified companies that have expressed interest in developing the Khazna Solar Photovoltaic project. A total of 27 […]

Turkey textiles

Hit by rising costs, Turkey’s textile producers move overseas

Textile manufacturers in Turkey, struggling with pricing pressures and labour costs, are moving their operations overseas, although at least some in the sector see a turnaround by the year’s end. The Istanbul Chamber of Industry sectoral purchasing managers’ index for March showed sentiment among textile manufacturers was the lowest among the 10 sectors covered by […]

Mubadala-backed Getir weighs asset sales

Turkey’s grocery delivery startup Getir is considering asset sales as part of its ongoing restructuring talks, according to a media report. The company, operating in five markets, including the UK, aims to sell off assets such as US online grocer FreshDirect, acquired last year, and BiTaksi, a ride-hailing app in Turkey, Sky News reported, citing unnamed […]