Saudi Arabia’s biggest bank and its state power utility raised a combined $3.4 billion in dollar bonds, extending a surge of issuers from the kingdom tapping global debt markets.
Saudi National Bank, the country’s largest lender by assets, sold $1 billion of perpetual notes callable after 5.5 years, according to a filing. Saudi Electricity raised $2.4 billion through Islamic bonds, or sukuk.
Details:
🚩Saudi National Bank additional tier 1 capital notes:
- Return: 6.15% per annum
- Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Credit Agricole, DBS Bank, Emirates NBD Bank, Goldman Sachs, HSBC Bank, Mashreqbank, SNB Capital and Standard Chartered were the joint lead managers and bookrunners for the proposed sale.
🚩Saudi Electricity’s senior unsecured sukuk:
- First tranche: $500 million; fixed rate of 4.310% per annum
- Second tranche: $700 million; fixed rate of 4.518% per annum
- Third Tranche: $1.2 billion; fixed rate of 5.065% per annum
- JPMorgan, HSBC, BoFA Securities, Abu Dhabi Commercial Bank, DIB, Emirates NBD, First Abu Dhabi Bank, Kuwait Finance House Capital, Standard Chartered, Al Rajhi Capital, Alinma Capital, Bank of China, The Islamic Corporation for the Development of the Private Sector, Intesa Sanpaolo, Industrial and Commercial Bank of China, SMBC, and SNB Capital manage the offering.
The corporate offerings follow a spate of international bond deals by issuers in the kingdom. Saudi Arabia returned to the international bond market earlier this month, raising $11.5 billion through a four-part offering. Others tapping the market included Saudi Telecom, Al Rajhi Bank, Riyad Bank, and Bank Albilad.
📌 Why it matters:
- The offerings signal Saudi corporates’ growing confidence in tapping international debt markets and the willingness of global investors to back regional banks and utilities despite broader market volatility.
📌 Bottom line:
- By issuing dollar-denominated bonds, SNB and Saudi Electricity are not only securing funding for expansion and capital requirements but also reinforcing the kingdom’s integration into global capital markets.
