Tuesday 11 August 2020
 
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LARGEST TIER II ISSUANCE

Lubna Olayan

SABB completes historic SR5bn sukuk

RIYADH, 19 days ago

SABB, a leading corporate and institutional international bank in Saudi Arabia, has announced the successful completion of its SR5 billion ($1.333 billion) Tier II sukuk.  
 
This marks the first transaction of the merged bank in the debt capital market, which was oversubscribed by a broad range of investors, once again confirming SABB’s leading position in the capital markets, and its continued strength and resilience in today’s challenging economic conditions.
 
SABB and Alawwal bank legally completed their historic merger on June 16, 2019. This was a transformational event for the financial services sector and the first banking merger in Saudi Arabia for a generation.
 
The transaction marks the joint largest Tier II issuance by a Saudi bank in history, the largest local issuance by a bank since the introduction of the kingdom’s national growth agenda under Vision 2030, as well as the largest non-government transaction in the Saudi Arabia debt market since 2018. 
 
SABB is proud to support the continued development of the local debt capital markets, the bank said.
 
SABB’s Chair Lubna Olayan commented: “We are very pleased with the success of the issuance in such  a challenging environment and would like to express our thanks to the investor community for their trust and confidence in the SABB franchise. We would also like to express our sincere gratitude for the continued support of the Saudi Arabia Monetary Authority and the Capital Market Authority.”
 
The structure of the sukuk was fully compliant with SAMA’s  Basel III requirements and was approved by SABB’s  Shari’ah committee.
 
HSBC Saudi Arabia was the sole Programme Arranger, sole Lead Manager and sole Bookrunner for the transaction. – TradeArabia News Service
 



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