Record subscriptions in Al Rajhi Bank’s first $1.7bn Sukuk issuance: Chairman

RIYADH: Al Rajhi Bank's chairman said it has successfully completed the issuance of its Tier 1 Saudi Riyal denominated Sukuk with a record number of investors.

The aggregate principal amount was set at SR6.5 billion ($1.7 billion) with a fixed profit rate of 3.5 percent per annum. The issuance saw an unprecedented number of participants exceeding 600 investors, according to a statement by Abdullah Suliman Al-Rajhi, the bank’s chairman.

This issuance marks the largest by a financial institution in Saudi Arabia and the first of its kind in the bank’s history as well, Al-Rajhi said.

Al-Rajhi added that subscriptions received from qualified individual investors were fully allocated and constituted 38 percent of the total issuance. This step is part of the bank’s efforts to expand its investor base, in line with the Kingdom’s Vision 2030 objectives to diversify sources of income and enhance the investment climate.