Al-Rajhi Bank has announced its intention to issue the first tranche called sukuk in Saudi riyals, through a private placement within Saudi Arabia to support the capital base.
In a statement to Saudi Tadawul, the bank said it had named Al-Rajhi Capital Company as lead manager and sole holder of the record of IPO, to hold meetings with investors.
He explained that approval from the bank’s board of directors was issued in mid-December to issue and offer sukuk in compliance with market conditions and the bank’s financial and strategic needs, as the bank deems appropriate.
He continued: “The value and terms of the sukuk offer will be determined in based on market conditions “.
He specified that the objective of the issue will be to support the bank’s capital base and meet its financial and strategic needs.
The issuance of the sukuk is subject to the approval of the relevant official authorities and will comply with relevant laws and regulations.
The bank has stated that this announcement does not constitute an invitation or offer to buy, own or subscribe to securities. The Bank will announce any other significant developments in due course in compliance with relevant laws and regulations.
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