Emirates NBD arranges Al Rajhi’s $1bln inaugural Sukuk

Emirates NBD arranges Al Rajhi’s $1bln inaugural Sukuk

- Emirates NBD was a Joint Lead Manager and Joint Bookrunner

Dubai: Emirates NBD, a leading banking group in the Middle East, North Africa and Turkey (MENAT) region, has successfully priced a USD 1 billion Senior Unsecured Sustainable Sukuk for Al Rajhi Bank, the world’s largest Islamic bank by assets and market capitalisation.

The 5-year Sukuk which priced at an reoffer yield of 4.774% generated strong demand, attracting orders of over USD 3.75 billion. The robust order book allowed Al Rajhi to tighten the pricing by 40 basis points to 5-year US Treasury + 110bps from an initial price guidance of 150 basis points. The Sukuk was strongly anchored by Middle Eastern investors, who accounted for 49% of the allocation. The issue also witnessed strong demand from high quality international investors.

The Sukuk was issued under Al Rajhi’s USD 4bn Trust Certificates Program, 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 & Eastern Europe, Middle East and Africa following the recent volatility in the