BSF completes successful USD900 million sukuk issuance

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The landmark sukuk issuance was oversubscribed by more than three times, reflecting investor’s strong confidence and market appetite

25 May 2023, Riyadh, Saudi Arabia – Banque Saudi Fransi (“BSF”), one of the largest providers of corporate banking services in Saudi Arabia, has successfully concluded the issuance of its USD900 million RegS senior unsecured sukuk, further cementing its position as a leading player in the Islamic financial market.

The US dollar-denominated issuance will offer an attractive annual yield of 4.75 per cent, maturing in five years and will be listed on the London Stock Exchange. The primary purpose of the sukuk is to cater BSF’s strategic requirements, notably to support its franchise growth in alignment with Vision 2030 initiatives and to further enhance BSF's strong liquidity.

Citigroup Global Markets Limited, First Abu Dhabi Bank PJSC, Goldman Sachs International, HSBC Bank, Mizuho International and Saudi Fransi Capital were the mandated Joint Lead Managers and bookrunners for the sukuk issuance.

The issuance was more than three times oversubscribed, with total orders exceeding USD2.9 billion, reflecting the market’s robust appetite and confidence investors place in BSF, leveraging its strong credit profile, innovative, and customized financial solutions. This successful transaction also resulted in the tightest credit spread in Saudi Arabia by any non-Sovereign issuer so far in 2023.

This landmark achievement is a testament to BSF’s position as a key player in the regional financial landscape. By consistently delivering strong results and leveraging its robust credit profile, BSF continues to spearhead financial growth and foster long-term prosperity, aligning itself with the ever-evolving needs of its clients and contributing to the development of Saudi Arabia's economy.

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