BSF Plans to Issue Additional Tier 1 Capital Sukuk Denominated in U.S. Dollars

Banque Saudi Fransi (BSF) announced on Monday its intention to issue additional Tier 1 capital sukuk denominated in U.S. dollars under its Additional Tier 1 Capital Sukuk Program. This move follows a resolution by the Board of Directors authorizing members of executive management to establish the program and issue sukuk series from time to time on behalf of the bank.

The issuance is expected to be conducted through an offering directed to qualified investors inside and outside the Kingdom of Saudi Arabia.

BSF has appointed Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank, Emirates NBD PJSC, HSBC Bank PLC, Mashreq Bank PSC, Merrill Lynch Saudi Arabia, Mizuho International PLC, MUFG Securities EMEA PLC, and Saudi Fransi Capital as joint lead managers for the offering.

According to a statement published on Tadawul, the offering aims to strengthen the bank’s Tier 1 capital and support general banking purposes.

The sukuk issuance is subject to obtaining the necessary regulatory approvals and will be carried out in compliance with applicable laws and regulations.