Banque Saudi Fransi (BSF) has successfully raised SAR 2.5 billion ($666.6 million) through the issuance of sukuk.
The sukuk, denominated in Saudi riyals, is classified as Additional Tier 1 (AT1) and offers an annual return rate of 6.4%. This financial instrument is part of the bank’s broader SAR 8 billion AT1 Capital Sukuk Programme.
These sukuk certificates are noted for being perpetual, meaning they do not have a fixed maturity date. However, they contain provisions for early redemption based on specified call dates or other stipulated conditions.
Saudi Fransi Capital played a crucial role in this private placement offering, taking up responsibilities as the sole bookrunner, lead arranger and lead manager.
In recent times, GCC banks and corporations have increasingly relied on sukuk to boost capital and fund growth ambitions. For instance, Saudi’s Cenomi Centers launched a $1.15 billion sukuk mandate this month.
In the UAE, a Retail Sukuk programme was recently launched. It gives residents the opportunity to invest. Additionally, Bank of Sharjah unveiled a $500 million Sukuk.
