Saudi National Bank Plans to Sell Dollar Bonds to Increase Its Capital

Saudi National Bank Plans to Sell Dollar Bonds to Increase Its Capital

Saudi National Bank (SNB), the biggest bank in Saudi Arabia, said on Thursday that it plans to issue Tier 2 capital notes in US dollars. This will be done through its Euro Medium Term Note (EMTN) program. The move is part of the bank’s strategy to make its financial position stronger.

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Bond Issue

The Saudi National Bank (SNB) plans to issue bonds, but the final size and terms will depend on market conditions. In an official statement, SNB said the money raised will help strengthen its Tier 2 capital and support general business needs.

The bond will be issued through a special purpose vehicle and offered to qualified investors in Saudi Arabia and internationally.

To manage the bond offering, SNB has chosen a group of major local and global banks. These include Abu Dhabi Commercial Bank, DBS Bank, Emirates NBD, Goldman Sachs, HSBC, J.P. Morgan, Mashreqbank, Mizuho, SNB Capital, SMBC, and Standard Chartered. All of them will act as Joint Lead Managers and Bookrunners.
This offering still needs approval from regulators.

Earlier this year, SNB shareholders agreed to a plan allowing the bank to buy back up to 16 million shares. These shares will be used for its Key Employees Equity Program, which is designed to reward and keep top employees.

First-Quarter Results

In the first quarter of the year, SNB made a net profit of $1.6 billion (SAR 6 billion), a 19.5% increase from the same period last year. This was helped by a 7.6% rise in operating income and a 16.7% drop in operating expenses.

SNB’s total operating income rose to $2.5 billion (SAR 9.6 billion). This came from:

• A 5% increase in net special commission income ($1.9 billion or SAR 7.3 billion)
• A 6.6% rise in banking service fees ($320 million or SAR 1.2 billion)
• A 34.9% gain from investments ($240 million or SAR 900 million)

Background

SNB was founded in 1953 as the National Commercial Bank. It merged with Samba Financial Group in 2021. Today, it has 481 branches and 93 QuickPay centers across Saudi Arabia. It also operates in Bahrain, the UAE, Qatar, and Singapore, and has subsidiaries in Pakistan and Türkiye.

Published: 13th June 2025

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