Sukuk

RIYADH: Al Rajhi Bank has completed a $600 million Tier 2 social sukuk offering, with the 10.5-year certificates carrying an annual return of 6.23 percent. 

Settlement is scheduled for Sept. 10, according to the bank’s Saudi Exchange filing. 

The latest offering comprises 3,000 trust certificates, each with a par value of $200,000. The instruments are callable after 5.25 years. 

The transaction marks the Saudi lender’s second international Tier 2 social sukuk issuance, following a $1 billion offering completed in September 2025. 

The issuance comes as Saudi banks increasingly tap international debt markets to diversify their funding sources and bolster regulatory capital, while strong credit growth and the kingdom’s economic transformation continue to drive demand for financing. 

“The Trust Certificates may be redeemed in certain cases as detailed in the offering circular in relation to the Trust Certificates,” the statement said. 

The certificates will be listed on the London Stock Exchange’s International Securities Market and may be sold in reliance on Regulation S under the US Securities Act of 1933. 

The offering was directed at eligible investors in Saudi Arabia and international markets. Al Rajhi Bank announced its intention to issue the certificates and commenced the offering on Sept. 3. 

Al Rajhi Capital, Arqaam Capital, Banco Bilbao Vizcaya Argentaria and Citigroup were among the joint lead managers and bookrunners for the offering. Intesa Sanpaolo’s London branch, Morgan Stanley, SMBC Bank International, Standard Chartered and Warba Bank also held the role. 

Previous issuance  

Al Rajhi Bank’s $1 billion Tier 2 social sukuk issued in September 2025 marked its first Tier 2 transaction in international debt markets, according to the lender’s 2026 allocation and impact report.  

That issuance carried a 5.65 percent annual return, had a 10.5-year maturity and was callable after five years. It was also listed on the London Stock Exchange’s International Securities Market.  

The bank said the earlier instrument was issued under its sustainable finance framework and structured to support capital adequacy while advancing social objectives.  

The latest transaction follows a 14.2 percent annual increase in Al Rajhi Bank’s first-half net profit to SR13.76 billion ($3.67 billion), according to a separate Saudi Exchange disclosure.  

The lender reported assets of SR1.05 trillion at the end of June, while its financing portfolio reached SR762.1 billion and customer deposits stood at SR688.4 billion.  

RIYADH: Saudi Arabia has opened subscriptions for its September “Sah” savings sukuk, offering a fixed annual return of 4.80 percent, up from 4.70 percent in August’s issuance. 

The window opened at 10 a.m. Saudi time on Sept. 6 and closes at 3 p.m. on Sept. 8, according to the National Debt Management Center, or NDMC. 

The Shariah-compliant sukuk is denominated in Saudi riyals, carries a one-year maturity and pays a fixed return at maturity. The issuance is part of the NDMC’s 2026 calendar and reflects the Kingdom’s efforts to boost household savings and advance financial inclusion. 

The Shariah-compliant sukuk is denominated in Saudi riyals, carries a one-year maturity and pays a fixed return at maturity. The issuance is part of the NDMC’s 2026 calendar and reflects the Kingdom’s efforts to boost household savings and advance financial inclusion. 

In a post on X, the NDMC said the minimum subscription is SR1,000 ($266), while the maximum is capped at SR200,000 per individual across the program period. 

The sukuk is available only to Saudi citizens aged 18 or older through approved platforms, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital.  

Issued monthly, “Sah” sukuk returns are set according to prevailing market conditions. The program is issued by the Ministry of Finance and arranged by the NDMC and is designed to encourage personal savings and expand financial inclusion. 

Launched under Vision 2030’s Financial Sector Development Program, “Sah” aims to raise the Kingdom’s national savings rate to 10 percent by 2030, up from about 6 percent currently. 

International sukuk 

On Sept. 2, the Kingdom raised $3.25 billion through a two-tranche international sukuk issuance that drew about $16.5 billion in orders, the NDMC said. 

The order book was about five times the size of the offering, as the Kingdom tapped international Islamic debt markets through its Global Trust Certificate Issuance Program. 

Separately, Saudi Arabia’s non-oil private sector grew at its fastest pace in six months in August, with the Riyadh Bank Purchasing Managers’ Index rising to 53.8, driven by stronger business activity and domestic demand. 

The reading came as the non-oil economy continued to show resilience amid a sharp downturn in oil activity.