Al Rajhi Bank Issues $600M Social Tier 2 Sukuk

Al Rajhi Bank has completed the issuance of a USD 600 million social sukuk, structured as U.S. dollar-denominated Tier 2 trust certificates aimed at supporting financing activities that carry a defined social impact. The offering was made to eligible investors inside and outside Saudi Arabia.

The issuance comprises 3,000 certificates with a nominal value of USD 200,000 each, priced at par (100% of nominal value). It carries a periodic distribution rate of 6.232% 5 years, with the bank holding an option to redeem the sukuk after 5.25 years, subject to the terms and conditions.

Settlement of the issuance is set for 10 September 2026. The sukuk is to be listed on the International Securities Market of the London Stock Exchange, and was offered under Regulation S format through a trust certificate issuance programme via a special purpose vehicle. The instruments are structured to qualify as Tier 2 regulatory capital under Saudi banking capital rules.

Designated as a “social” sukuk under the bank’s sustainable finance framework, proceeds are earmarked for activities with a social dimension — including social infrastructure, affordable housing, and small business and microfinance categories. Distributions and proceeds are handled in U.S. dollars.

What it means for the community

Retail investors in Saudi Arabia typically access international sukuk of this kind indirectly, through licensed capital market intermediaries or investment funds. There is no direct retail subscription via platforms such as أبشر or توكلنا. Investors seeking official information can refer to the Saudi Exchange issuer announcements platform, the bank’s investor relations portal, and the applicable regulations of the Capital Market Authority.

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