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Al Rajhi Bank, one of Saudi Arabia's largest financial institutions, has announced plans to issue US dollar-denominated Tier 2 social sukuk under its international sukuk issuance program. The decision follows resolutions passed by the bank's board of directors, and the offering will be facilitated through a special purpose vehicle targeting eligible investors both inside Saudi Arabia and internationally. The final size and terms of the issuance will depend on prevailing global market conditions.
The issuance is designed to support Al Rajhi Bank's core financial and strategic objectives aligned with its sustainable finance framework. To execute the deal, the bank has appointed a consortium of major local and international financial institutions as joint lead managers and bookrunners, including Al Rajhi Capital, Citigroup, Morgan Stanley, Standard Chartered Bank, and BBVA, underscoring strong institutional interest in Gulf debt issuances.
For fixed-income investors and regional markets, this move highlights the growing demand for ESG-aligned and social debt instruments in the GCC region. Market participants will be watching the final pricing, order book volume, and yield spread, which will serve as a benchmark for future banking sector debt issuances in Saudi Arabia.
