BSF successfully completes USD700 million trust certificate issuance

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18 January 2024, Riyadh, Saudi Arabia – Banque Saudi Fransi (BSF), one of the largest commercial and corporate banks in Saudi Arabia, has announced the completion of its USD700 million trust certificates issuance programme (sukuk), demonstrating its strength as a key institution in the regional Islamic finance landscape.

The sukuk was oversubscribed by 4.4 times, with total orders exceeding USD3.1 billion, affirming the Kingdom’s economic stability and attractiveness as a destination for Shariah-compliant financial investments, while also underscoring BSF’s well-established presence in capital markets.

Priced at 105 basis points over US Treasuries, the US dollar-denominated certificates carry a fixed coupon rate of 5 per cent for a maturity period of five years.

The offering saw participation from a diversified profile of investors, reflecting the broad appeal of BSF’s offerings. The transaction also involved one of the lowest sovereign premiums for any GCC Financial Institution Group issuer. Meanwhile, Bank of America Securities, Citigroup Global Markets Limited, Emirates NBD Capital, HSBC Bank plc, Mizuho International plc and Saudi Fransi Capital were mandated as the joint lead managers for the offering.

BSF, rated A-/A2/A- by S&P’s, Moody’s and Fitch, will utilise proceeds from the transaction to fulfil the institution's overarching business objectives and operational requirements. The certificates will be listed on the International Securities Market of the London Stock Exchange.

As a key player in the Saudi financial sector, BSF takes pride in its role as a catalyst for economic development in the Kingdom. BSF remains committed to fostering growth through innovative financing solutions that align with Islamic principles.

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