The Clap
Al Rajhi Bank (1120) finalized the first tranche of Sukuks denominated in Saudi riyals.
The Deets
The bank explained that the value of the offering is SAR 10 billion from 10 million Sukuk.
The Sukuk has a fixed return of 5.5% per annum, payable on a quarterly basis, starting from the settlement date of November 16th.
So What
These Sukuks are the first Sukuks to be offered for public subscription at a fixed annual profit rate.
The subscription achieved record numbers in the history of the Saudi Sukuk market, oversubscribed by about 300% of the original issue size of SAR 4 billion, according to Abdullah bin Sulaiman Al Rajhi, the Chairman of the Board of Directors of Al Rajhi Bank.
Now What
The Sukuk will be listed and traded on the Tadawul after the completion of all the necessary regulatory procedures.
