Al Rajhi Bank Completes $1 Billion Social Additional Tier 1 Sukuk Offering at 6.15% Yield

Riyadh | EcoPulse24
Al Rajhi Bank announced the successful completion of its social Additional Tier 1 (AT1) capital sukuk issuance, denominated in US dollars with a total value of $1 billion. The issuance is part of the bank’s international AT1 capital sukuk program, as disclosed on the Saudi Stock Exchange (Tadawul).

The bank clarified that settlement of the sukuk will occur on January 14, 2026, following the completion of the offering, which targeted qualified investors both within Saudi Arabia and internationally, in line with applicable regulatory frameworks.

Issuance Details:
- Type: Social Additional Tier 1 Capital Sukuk (AT1)
- Value: $1,000,000,000
- Number of Sukuk: 5,000
- Nominal Value per Sukuk: $200,000
- Annual Yield: 6.15%
- Tenure: Perpetual, with an option to redeem after five years
- Listing: International Securities Market, London Stock Exchange
- Distribution: Regulation S under the US Securities Act

Significance:
This issuance demonstrates Al Rajhi Bank’s ability to access international debt markets on competitive terms, at a time when global demand for sharia-compliant and socially responsible capital instruments is rising.

The transaction will enhance the bank’s regulatory capital base and provide additional financial flexibility to support expansion and business growth, while maintaining a robust financial position in line with capital adequacy requirements.

Share Performance:
In today’s trading, Al Rajhi Bank’s share (1120) closed at SAR 98.70, down 0.55%, with a trading value of approximately SAR 20.1 million and a volume exceeding 203,700 shares.

Note: This news does not constitute an offer or invitation to subscribe or purchase. The issuance is subject to all terms and conditions outlined in the approved offering document.