Arab National Bank raises $750M in dollar sukuk at 6.5%
What's the deal? Saudi Arabia's Arab National BankDealroom has a profile for this one. Try Dealroom → has raised $750 million through a dollar-denominated additional tier 1 sukuk priced at 6.5%. The perpetual issue is callable after five years and will be listed in London.
What's the endgame? Additional tier 1 instruments count as regulatory capital, giving banks a buffer to absorb losses and support lending. For the lender, the raise strengthens its capital base as it competes in one of the Gulf's largest banking markets.
Why now? The perpetual structure, callable after five years, is a common route for banks tapping international debt investors. Listing in London gives the sukuk exposure to a deep pool of dollar-focused buyers.
The signal: The deal ranks among the larger raises of its kind, sitting in roughly the top 28% by amount. As Gulf lenders lean on dollar sukuk to shore up capital, Arab National Bank's issue underscores steady appetite for Sharia-compliant debt on international markets.
Read more: intellinews.com
Image credit: MNmagic
