Saudi Awwal Bank’s AT1 sukuk stood out as the first ever deal of this structure in a dual-tranche format.
Robust demand allowed final terms for the deal to tighten to three-month SAIBOR + 134 basis points and 6.07% reflecting strong price tension and smooth execution.
The book closed with commitments from 85 separate investors – 47% more than Saudi Awwal Bank’s October 2023 AT1 transaction – highlighting growing appetite for Saudi riyal AT1 paper. Banks’ treasury desks, asset managers and corporates dominated allocations, while government-related entities, insurance companies and qualified individual investors also featured, underscoring broad diversification across investor categories.
The transaction’s scale and pricing demonstrate market confidence in Saudi Awwal Bank’s credit profile and the depth of the Kingdom’s Shariah-compliant capital market.
HSBC acted as sole lead manager and sole bookrunner.
