Saudi Press

Saudi Arabia and the world
Monday, May 12, 2025

Alrajhi Bank offers Tier 1 Sukuk denominated in Saudi Riyals for public subscription

Alrajhi Bank offers Tier 1 Sukuk denominated in Saudi Riyals for public subscription

Alrajhi bank announced the launch of its Tier 1 Sukuk denominated in Saudi Riyals on Sunday, October 30th, 2022. Alrajhi Capital, was appointed as the financial advisor and lead manager in connection with the offering, post receiving the Capital Markets Authority approval for the public offering on October 20th, 2022.
On the back of the bank's successful previous private issuance in January 2022, and the significant turnout by investors at that time, Alrajhi Bank decided to make this a public subscription. Due to this, it will be listed on the Saudi Stock Exchange (Tadawul), and hence investors will be able to actively trade and invest in the Sukuk. This will create liquidity for the Sukuk and provide a greater opportunity for investors in general, and retail investors in particular.

The bank determined a minimum investment amount of 5,000 Saudi Riyals, representing the value of five Sukuks, with each unit having a face value of 1,000 Saudi Riyals, and set the annual return on the Sukuk at 5.50%. According to the bank, Sukuk profits will be distributed to investors on a quarterly basis (every three months). The Tier 1 Sukuk shares many characteristics with equity instruments, such as ordinary shares in companies, including Zakat treatment.

Sukuk subscriptions and offerings will begin on Sunday, October 30th, 2022, and will end on Thursday, November 10th, 2022. Investors will be able to subscribe to Sukuk during this time period using the means available through the receiving banks, including their digital channels. Alrajhi bank, Saudi National Bank, Riyad Bank, Alinma Bank, Banque Saudi Fransi, Aljazira Capital, Arab National Bank, and Bank Albilad are among the recipients. It is also worth noting that the Tier 1 Sukuk is Shariah-compliant, with no maturity date (perpetual), and callable in five years by the bank. The purpose of issuing the Sukuk is to improve the bank’s ability to expand its business. Moreover, Sukuk is one of the main investment instruments for generating consistent income on a regular basis for investors.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump's Upcoming Middle East Trip Excludes Israel, Raising Concerns Among Israeli Officials
Kurdistan Workers Party Announces Dissolution Amid Ongoing Conflict Resolution Efforts
Trump's Upcoming Visit to Gulf Nations: Investment and Security at the Forefront
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
IMF Predicts No Global Recession Amid Trade Tensions
Worldwide Markets Decline as U.S.-China Trade Frictions Intensify
OpenAI Lands Unprecedented $40 Billion Investment
Removing the Political Adversary is Dismantling What's Remaining of Turkey's Economy.
Ex-FIFA President and French Football Icon Acquitted of Corruption Allegations
White House Investigates Security Breach After Journalist Accidentally Added to Secret Yemen Strike Chat
Volunteers in Jeddah Ensure No One Goes Hungry During Ramadan Iftar
New Restaurant Opens in Makkah's Iconic Clock Tower for Ramadan Iftar
Saudi Arabia's Project Masam Removes 552 Houthi Mines in Yemen
Saudi Arabia Fines Over 400 Foreign Trucks for Regulatory Violations
Saudi National Campaign for Charitable Work Reports Significant Donations in Ramadan
Historic Al-Hosn Al-Asfal Mosque Restored in Asir as Part of National Heritage Initiative
KSrelief Expands Humanitarian Efforts in Syria, Sudan, and Lebanon
Saudi Arabia Advocates for Global Water Cooperation at Forum
Madinah Governor Tours Islamic Arts Biennale in Jeddah
Saudi Foreign Minister in Cairo to Lead Meeting on Gaza Developments
Recognition of Saudi and Pakistani Entrepreneurs at Riyadh Ceremony
UAE Announces $1.4 Trillion Investment Plan in the United States
Saudi Arabia Innovates in Soil Quality and Water Conservation
Governor of Taif Engages with Rose and Aromatic Plants Cooperative
Saudi Food and Drug Authority Enhances Preparations for Hajj Season
Saudi Arabia Distributes Aid to Yemen and Romania
Restoration of Historic Al-Qalaah Mosque in Riyadh Underlines Heritage Preservation Efforts
Saudi Arabia Arrests Over 25,000 for Immigration Violations in One Week
UAE’s ADQ and Energy Capital Partners Announce $25 Billion Energy Venture in the U.S.
KSrelief Launches Extensive Ramadan Food Aid Initiative
Ramadan Celebrations Revitalize Historic Jeddah
Makkah Authorities Urge Worshippers to Follow Crowd Management Guidelines
Direct Flights Between Dammam and Damascus Reestablished for Syrian Residents
×