Al Rajhi Bank announces the commencement of the offer and subscription in its Tier 1 Sukuk denominated in SAR with a return of 5.50% per annum fixed rate payable quarterly
| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement made by Al Rajhi Bank published on the website of the Saudi Stock Exchange (Tadawul) on 28/03/1444H (corresponding to 24/10/2022G), relating to Al Rajhi Bank’s intention to issue Tier 1 Sukuk denominated in SAR (the “Sukuk”) and the public offering thereof, Al Rajhi Bank announces the commencement of the Sukuk’s offering and the retail and institutional subscription period. |
| Offer Type | Tier 1 Sukuk denominated in SAR. |
| Value of the offer | The issuance amount has been determined on an initial basis at SAR 4,000,000,000. The definitive issuance amount will be determined after the completion of the offer period, based on market conditions at that time. |
| Offering start Date | 2022-10-30 Corresponding to 1444-04-05 |
| Offering end Date | 2022-11-10 Corresponding to 1444-04-16 |
| The targeted class of the issuance | The Sukuk will be offered to eligible natural and legal persons in the Kingdom of Saudi Arabia and any other relevant jurisdiction where the Sukuk may be lawfully offered. |
| Name of Issuance Manager | Al Rajhi Bank has mandated Al Rajhi Capital Company as financial advisor, lead manager and dealer in relation the offering and issuance of the Sukuk. |
| Minimum Subscription | Five Sukuk with a nominal value of SAR 5,000. For further details, please refer to the base prospectus prepared in relation to the Sukuk. |
| Offer Price (Sukuk /Bonds) | SAR 1,000 per Sak. |
| Par Value | SAR 1,000 per Sak. |
| Return (Sukuk /Bonds) | 5.50% per annum fixed rate payable quarterly. |
| Maturity (Sukuk /Bonds) | Perpetual. |
| Terms of Redemption | The Sukuk may be redeemed by Al Rajhi Bank in certain cases as detailed in the base prospectus dated 24/03/1444H (corresponding to 20/10/2022G) (the “Base Prospectus”) prepared in relation to the Sukuk. |
| Additional Information | Institutional investors wishing to purchase the Sukuk will be required to submit a duly completed form to the relevant dealer(s).
Retail investors will be required to submit a duly completed form to the receiving agents through the available channels, including through phone banking, or the ATM machines of the receiving agents.
The receiving agents are Al Rajhi Bank, Saudi National Bank, Alinma Bank, Arab National Bank, Banque Saudi Fransi, AlJazira Capital, Riyad Bank, and Bank Albilad.
The purchase of the Sukuk by investors is subject to satisfying the terms and conditions set out in the investor application form and the Base Prospectus. For further details about the subscription in the Sukuk, please refer to the Base Prospectus.
Al Rajhi Bank stresses the importance of reviewing (i) the Base Prospectus, and (ii) Al Rajhi Bank’s interim condensed consolidated financial statements (unaudited) as at and for the nine-month period ended 30 September 2022 (the “Interim Financial Statements”), carefully and in full before making any investment decision in relation to the subscription in the Sukuk. The Base Prospectus has been published on the Capital Market Authority’s website (https://cma.org.sa), and the following page: https://www.alrajhi-capital.com/en/investment-banking/al-rajhi-bank-sukuk-subscription/. |
Comments