Riyad Bank, a Saudi Arabian financial institution, has issued $1.5 billion sukuk, a Sharia-compliant bond, on the International Securities Market of the London Stock Exchange, according to a document filed by the bank on Wednesday.
The bank received more than $7.6 billion in orders for the sukuk, Reuters reported, citing a document, with JPMorgan, Riyad Capital and Standard Chartered hired to lead the deal. First Abu Dhabi Bank and HSBC were also involved in the sale.
The sukuk was sold at a 3.174 percent fixed return rate per year with a 10-year tenure. The bank noted, however, that there was a five-year call date on the sukuk, meaning it could be redeemed before the 10-year maturity date.
Gulf financial institutions and governments across the region have upped their debt issuance in recent years to fund expansion and growth while taking advantage of record low global borrowing costs due to low interest rates.
Malaysian lender Maybank Islamic to arrange Gulf sukuk, opens Dubai branchMaybank Islamic aims to arrange six dollar sukuk deals in the Gulf in 2020, including at least one sovereign issuance, its CEO said on Monday, as the ... Economy
Islamic Development Bank set to raise 1 bln euro in green sukukJeddah-based Islamic Development Bank is set to raise 1 billion euro ($1.10 billion) through five-year “green” sukuk, or Islamic bonds, a ... Financial Markets
Saudi Arabia raises 1.4 bln riyals in domestic sukukSaudi Arabia raised 1.415 billion riyals ($377.33 million) in domestic sukuk, or Islamic bonds, part of an existing sukuk program, the finance ... Business