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# Al Rajhi Bank completes USD 1.5 billion perpetual AT1 sustainable sukuk at 6.25%
- URL: https://www.theglobalbanker.com/al-rajhi-bank-completes-usd-1-5-billion-perpetual-at1-sustainable-sukuk-at-6-25/
- Published: 2025-01-15T14:36:00.000Z
- Updated: 2026-10-01T10:04:33.000Z
- Description: The Saudi lender's dollar-denominated Additional Tier 1 sukuk, callable after five years, follows a USD 1 billion AT1 sustainable issue in May 2024.
- Author: TGB Editorial Team
- Tags: ESG, MENA, #archive

Al Rajhi Bank said on 15 January 2025 that it had completed the offering of a USD 1.5 billion Additional Tier 1 (AT1) sustainable sukuk, in a disclosure to the Saudi Exchange (Tadawul). The offer period opened on 14 January and closed on 15 January, with settlement scheduled for 21 January 2025.

The sukuk carry a profit rate of 6.25% a year. They are perpetual instruments with no fixed maturity, and the bank may redeem them after five years, subject to specified conditions.

#### ISSUE TERMS

The issue comprised 7,500 sukuk with a nominal value of USD 200,000 each. The certificates were offered under Regulation S of the US Securities Act of 1933 and are to be listed on the London Stock Exchange's International Securities Market. They were issued under the bank's international AT1 sukuk programme.

Al Rajhi Bank said the proceeds would support initiatives under its Sustainable Finance Framework and strengthen its capital base. As AT1 instruments, the sukuk count towards the bank's Tier 1 regulatory capital.

#### SECOND AT1 SUSTAINABLE DEAL IN A YEAR

The transaction is the bank's second AT1 sustainable sukuk in less than a year. In May 2024, Al Rajhi Bank raised USD 1 billion through an AT1 sustainable sukuk that drew about USD 3.5 billion in orders from local and foreign investors. In March 2024 it had raised a further USD 1 billion through a five-year US dollar sustainable sukuk.

Banque Saudi Fransi completed a separate USD 750 million five-year sukuk offering in the same week, carrying a 5.375% profit rate.