Saudi National Bank Strengthens Capital with $461 Million Sukuk Issuance
Deal News | Jun 04, 2025 | Zawya
Saudi National Bank (SNB) has successfully issued Additional Tier 1 sukuk amounting to 1.73 billion Saudi riyals ($461.3 million) with a profit rate set at 6%. This 5-year perpetual sukuk is part of SNB's strategic initiative to bolster its capital reserves, aligning with the Basel III framework. The issuance is expected to enhance the stability and capital adequacy of the bank in the long term. SNB Capital was the sole bookrunner, lead arranger, and manager, showcasing its expertise in handling significant financial transactions. This move underscores SNB's commitment to strengthening its financial structure and supporting its growth objectives.
Sectors
- Banking
- Islamic Finance
- Capital Markets
Geography
- Saudi Arabia – Saudi National Bank and SNB Capital are based in Saudi Arabia, and the sukuk issuance is denominated in Saudi riyals.
Industry
- Banking – The issuance of the sukuk by a major banking institution like Saudi National Bank is a significant event in the banking industry.
- Islamic Finance – The issuance of sukuk, which are compliant with Islamic finance principles, highlights the relevance of this sector.
- Capital Markets – The sukuk issuance is a vital activity within capital markets, showcasing investment and capital-raising mechanisms.
Financials
- $461.3 million – The total value of the sukuk issuance.
- 6% – The profit rate of the sukuk.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi National Bank | Issuer | Company | A leading banking institution in Saudi Arabia, responsible for issuing the sukuk. |
| SNB Capital | Bookrunner, Lead Arranger, and Lead Manager | Company | A subsidiary of Saudi National Bank, providing financial management services for the sukuk issuance. |
| Brinda Darasha | Writer | Person | |
| Daniel Luiz | Editor | Person |