The Clap
Al Rajhi Bank (1120) began offering the first tranche of Sukuks denominated in SAR for public subscriptions, offering a fixed rate of 5.5% annually.
The Deets
According to the bank, the value of the issuance was initially set at SAR 4 billion, but the final value will be determined after the offering period ends and based on market conditions.
Sukuks
The Sukuks are Shariah-compliant securities with no maturity date that the bank can redeem after five years.
The Sukuk’s aim to help financial institutions expand their business.
The Sukuks are one of the most important investment tools that provide a regular stream of income.
Now What
The Sukuk will be priced at SAR 1000 and the minimum subscription is 5 bonds. The offering will end on November 10.
