Banque Saudi Fransi (BSF), one of Saudi Arabia’s leading financial institutions, has successfully raised SAR 2.5 billion ($666.6 million) through a private placement of Shariah-compliant sukuk.
The Saudi riyal-denominated Additional Tier 1 (AT1) sukuk offers investors an annual return of 6.4% and comprises 2,500 bonds, each with a par value of SAR 1 million. The issuance is part of BSF’s broader SAR 8 billion AT1 Capital Sukuk Programme, which is designed to strengthen the bank’s capital base and support its growth and funding objectives.
The sukuk are perpetual instruments with no fixed maturity date, providing long-term capital flexibility for the bank. However, they include provisions for early redemption on a call date or as otherwise specified in the issuance terms and conditions.
Saudi Fransi Capital acted as the sole bookrunner, lead arranger, and lead manager for the private placement. The successful completion of the issuance reflects investors’ strong confidence in BSF’s financial stability and the bank’s continued role in developing Saudi Arabia’s Islamic capital market.