Abdullah Al Rajhi: With coverage approaching 300% of the expected Issue size, more than 125,000 investors subscribed in Al Rajhi Bank’s Tier1 Sukuk.

Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of Al Rajhi Bank, announced the results of the IPO offering of Al Rajhi Bank’s Tier 1 Sukuk denominated in riyal as the first sukuk of its kind for financial institutions and companies in the Kingdom of Saudi Arabia to be offered for public offering at a fixed profit rate of 5.5% per annum, which ended last Thursday.
He explained that the IPO achieved record numbers that are the largest in the history of the Saudi sukuk market, where the number of local and foreign investors exceeded 125 thousand investors from individuals, companies, financial institutions, charities and investment funds who subscribed to more than 11 million sukuk with a total value exceeded SAR 11 billion. With a coverage rate approaching 300% of the original issue size of SAR 4 billion
Mr. Abdullah Al Rajhi expressed his happiness with the success of this IPO and thanked the participating investors from individuals, companies and financial institutions, pointing out that these unprecedented figures reflect the extent of confidence in the bank.
He added that the IPO of sukuk is the first of its kind in the local debt capital market, as a gesture to diversify investment products and open new savings channels by participating in the sukuk and bond market and contributing to the creation of depth and diversification of its investor base. It also confirms the leading role of Al Rajhi Bank and its effective support for the development in debt capital market, one of the most important objectives of the Financial Sector Development Program, within the programs to achieve the Kingdom’s Vision 2030.
The Chairman of the Board of Directors thanked and appreciated Al Rajhi Capital for their excellence and successful management as the financial advisor and sole Lead Manager of the IPO and the subscription record for this offering, thus consolidating their position as a pillar in the sukuk market locally and globally. Mr. Abdullah bin Sulaiman Al-Rajhi also thanked all the receiving banks, who in turn contributed to the success of this IPO.
Al Rajhi concluded his statement by thanking the Bank’s valued customers for their constant loyalty and investors for their trust in the Bank, and also noted the Bank’s commitment to continue to provide the best financial solutions in accordance with the provisions of Islamic Sharia.
It is noteworthy that the bank had decided to raise the issue size from SAR 4 billion riyals to 10 billion riyals due to the high demand.