LSE List SAIB’s $750 Million Sukuk Issuance

The London Stock Exchange has announced the listing of The Saudi Arabia Investment Bank’s (SAIB) debut Tier 1 Sustainable Sukuk Issuance of $750 million. This significant issuance marks a milestone in the bank’s commitment to sustainable finance and reinforces its position as a leader in responsible banking practices in the Kingdom.

SAIB is a leading financial institution in Saudi Arabia dedicated to delivering innovative conventional and Sharia-compliant banking solutions. With a strong focus on customer service and social responsibility, SAIB plays a vital role in supporting economic growth and development in the Kingdom.

This landmark Sukuk issuance, with a Second Party Opinion (SPO) from Sustainable Fitch, demonstrates SAIB’s dedication to aligning its financial activities with Environmental, Social and Governance (ESG) principles.

The overwhelming investor demand underscores the confidence in SAIB’s credit worthiness and strategic direction. The funds raised will be allocated to financing and refinancing eligible projects under SAIB’s Sustainable Finance Framework. These initiatives contribute to the Kingdom’s Vision 2030 plan for a sustainable future.

Salman Bader Al-Fughom, Deputy CEO of The Saudi Investment Bank, thanked the investor community for the overwhelming confidence shown in their Bank.

“This Sustainable Sukuk Issuance is a strategic step in enhancing our financial framework. It aligns with our commitment to sustainability and reinforces our position as a leader in responsible banking practices. This issuance not only broadens our investor based but also sets a benchmark for future bond issuances in the region,” he added.

Established in June 1976 by a Royal decree and commenced operations nine months later, SAIB offers a range of services, including trade finance, financing for private and quasi-government industrial sectors, and Sharia-compliant banking products.

SAIB has several subsidiaries and joint ventures, including Saudi Orix Leasing and Amlak Global Finance and Real Estate Development.

The bank is among the 11 banks, whose long-term deposit ratings and standalone baseline credit assessments (BCA) were upgraded by Moody’s Investors Service.

Besides SAIB, the other banks include Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), Alinma Bank, Arab National Bank (ANB), Bank Albilad, Bank AlJazira, and Gulf International Bank (GIB) – Saudi Arabia.

Advisors and Participants

The advisors and partners, who supported LSE, includes Standard Chartered Bank (SCB), HSBC, Citi, Alistithmar Capital, JP Morgan, Goldman Sachs, Arqaam Capital, MUFG, Clifford Chance, and A&O Shearman, and whose expertise was crucial in the successful completion of this issuance.