Demand is high for Alrajhi bank’s first green sukuk
- Date: 13-May-2024
- Source: AGBI
- Sector:Financial Services
- Country:Saudi Arabia
Demand is high for Alrajhi bank’s first green sukuk
Saudi Arabia’s Alrajhi Bank has completed its $1 billion sukuk – having raised $3.5 billion in subscriptions from local and international investors – as the kingdom’s lenders push to raise funds for the government’s expensive giga-projects. Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by […]
Alrajhi completes $1bn sukuk
Saudi bank raises $3.5bn subscriptions
51% allocated to Mena investors
Saudi Arabia’s Alrajhi Bank has completed its $1 billion sukuk – having raised $3.5 billion in subscriptions from local and international investors – as the kingdom’s lenders push to raise funds for the government’s expensive giga-projects.
Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by many Muslims as they pay interest and may finance businesses involved in activities not allowed under Islamic law.
Alrajhi, the world’s largest Islamic bank, said 51 percent was allocated to investors in the Middle East and North Africa, 8 percent in Asia, 31 percent to investors in the US and Europe and 9 percent to Saudi investors.
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The issuance is the first sustainable Additional Tier 1 (AT1), or additional capital sukuk,