Emirates NBD arranges $1b inaugural sukuk for Al Rajhi

Emirates NBD arranges $1b inaugural sukuk for Al Rajhi

Local News, Uncategorized















DUBAI / WAM

Emirates NBD has successfully priced a $1 billion senior unsecured sustainable sukuk for Al Rajhi Bank, the world’s largest Islamic bank by assets and market capitalisation.

The five-year Sukuk which was priced at a reoffer yield of 4.774 percent generated strong demand, attracting orders of over $3.75 billion.

The robust order book allowed Al Rajhi to tighten the pricing by 40 basis points to 5-year US Treasury + 110 basis points (bps) from an initial price guidance of 150 bps.

The Sukuk was strongly anchored by Middle Eastern investors, who accounted for 49 percent of the allocation. The issue also witnessed strong demand from high quality international investors.

The sukuk was issued under Al Rajhi’s $4 billion Trust Certificates Programme, which was established in April 2022. The proceeds will be used to finance and refinance, in whole or in part, Eligible Sustainable Projects, as set out in the bank’s sustainable finance framework. The issue represents the first debt capital market transaction by a financial institution in Central and Eastern Europe, Middle East and Africa following the recent volatility in the global banking sector. Waleed Almogbel,