Saudi-based banking major Al Rajhi has announced that it has successfully completed the issuance of a SR6.5 billion ($1.7 billion) sukuk.
The issuance marks the largest issuance by a financial institution in the kingdom and the first of its kind in the bank’s history, a statement said.
It added that due to the significant investor demand, the bank decided to increase the issuance size to SR6.5 billion with a fixed profit rate of 3.5 percent per year.
Chairman Abdullah Suliman Al Rajhi said the number of participants reached an “unprecedented number” of more than 600 investors.
He also revealed that the qualified individual investors’ orders have been fully allocated which constitutes 38 percent of the total issuance, as an initiative to diversify the investor base.
Al Rajhi Bank announced earlier in January the commencement of offer through private placement of its SR denominated sukuk, aiming to support its core equity base and fulfill its financial and strategic needs.
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