Al-Rajhi Capital Company, in its capacity as the financial advisor and Lead Manager on the public offering of Alrajhi Bank Tier 1 Sukuk , announced the successful completion of the offering process and the successful settlement of sukuk, where is the number of subscribers reached more than 125,000 subscriber.
And the Company has mentioned that all the required sukuk were allocated to individual subscribers, and that the return of surplus subscription funds to institutional investors began on 22/04/1444H corresponding to 16/11/2022, and that the sukuk will be listed and traded in the Saudi Stock Exchange (Tadawul) after depositing it in the investment portfolios and completing all regulatory requirements .
Al-Rajhi Capital stated that Al-Rajhi Bank’s tier 1 riyal-denominated sukuk is the first sukuk of its kind for a financial institution in the Kingdom of Saudi Arabia, to be issued to individuals, financial institutions and companies, offered for public subscription at a profit rate of 5.5% annually payable on a quarterly basis, starting from the settlement date 22/04/1444H corresponding to 16/11/2022.
Mr. Waleed Al-Rashed, CEO of Al-Rajhi Capital, on his part, expressed his pride in the confidence of Al-Rajhi Bank, and its contribution in diversification of investment products, stressing the leadership in developing the sukuk market, debt instruments and diversifying the investor base in it, which is one of the financial sector development program most important objectives. And expressed his thanks to the Capital Market Authority and the Saudi Tadawul Group for their continuous support./span>
And also added that Al-Rajhi Capital is one of the largest financial advisors in the debt markets, whereas the Company achieved first place worldwide in the issuance of sukuk, according to Bloomberg’s 2022 rating.
It is worth mentioning that the tier 1 sukuk are Sharia-compliant securities that Perpetual , and the bank can recall them after five years. These sukuk are issued by financial institutions so they can grow their business. And sukuk are characterized as one of the most important investment instruments that provide fixed income on a regular basis.