The return on the sukuk is 4.75% annually
Today, Thursday, Al-Rajhi Bank announced the completion of issuance of sustainable US dollar-denominated sukuk under its international sukuk programme.
The bank said in a statement on “Saudi Arabia’s Tadawul” that the value of the issue amounted to one billion dollars, with 5,000 sukuk, based on the minimum category and the total volume of the issuance.
The nominal value of the sukuk was $200, the annual yield is 4.75%, and the sukuk’s maturity period is 5 years.
The sustainable sukuk may be redeemed early before its maturity period in certain cases specified in the offering documents for the sustainable sukuk.
It is noteworthy that the sustainable sukuk will be listed on the international financial market of the London Stock Exchange, and may be sold under Regulation S of the US Securities Act, as amended.
A document to offer the first sustainable dollar-denominated sukuk to Al-Rajhi Bank showed that requests exceeded more than $3.5 billion for the offering.
The bank reduced the indicative price of the sukuk by thirty basis points to about 120 basis points above the prices of US Treasury bills.