Saudi Awwal Bank Plans to Offer Dollar-Based Green Sukuk as Part of $5 Billion Program

Saudi Awwal Bank Plans to Offer Dollar-Based Green Sukuk as Part of $5 Billion Program

Saudi Awwal Bank (SAB) plans to issue dollar-based sustainable Sukuk through a private sale in Saudi Arabia and other countries. This will be part of its $5 billion Additional Tier 1 Capital Sukuk Program, according to a report on Monday.

New Sukuk Offering

The Saudi bank has announced a new Sukuk offering but has not shared details like the size or timing yet.

The goal of the offering is to strengthen the bank’s capital and support its sustainability efforts. The terms of the Sukuk will be decided based on market conditions at the time of the offer, according to the filing on the Saudi Exchange (Tadawul).

The bank has chosen a group of financial institutions to act as Joint Lead Managers for the Sukuk. This group includes HSBC Bank, Merrill Lynch International, Citigroup Global Markets, J.P. Morgan Securities, Kamco Investment Company, Mizuho International, Standard Chartered Bank, and Warba Bank.

The offering needs approval from the relevant regulatory authorities.

SAB’s shares dropped by 0.2% at 10:20 am AST on Monday after the announcement, bringing its market value to $18.7 billion (SAR 70.3 billion).

Riyal-Denominated Sukuk

In December, SAB completed its riyal-denominated Additional Tier-1 Sukuk offering through a private placement, raising about $1.1 billion in two parts.

The first part raised $971.3 million (SAR 3.65 billion), while the second part was worth $93.1 million (SAR 350 million).

This Sukuk was part of SAB’s SAR Additional Tier 1 Sukuk program, which is part of a $5.3 billion (SAR 20 billion) program aimed at strengthening the bank’s capital and supporting its long-term goals.

First-Quarter Performance

SAB reported a 4.5% increase in net profit for the first quarter, reaching $569.1 million (SAR 2.1 billion).

The bank said this growth was due to higher operating income, despite higher provisions for expected credit losses and operating expenses.

Published: 13th May 2025

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