Saudi Arabia’s Al Rajhi Bank has set the final price for its AT1 capital sustainable 6-year perpetual non-call mudaraba sukuk. The final price guidance disclosed is 6.375% +/- 12.5bps, with initial price thoughts (IPTs) in the 6.750% area.

Al Rajhi Bank has mandated Al Rajhi Capital, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank, Dubai Islamic Bank, Emirates NBD Bank, Goldman Sachs International, HSBC Bank, J.P. Morgan Securities, Mashreqbank (acting through its Islamic Banking Division), Morgan Stanley & Co. plc, MUFG Securities EMEA, SMBC Bank International and Standard Chartered Bank as joint lead managers and bookrunners.

Orderbook for the muradaba sukuk is currently over $4.1 billion, excluding joint lead manager interest.

The expected trade size is $1.25 billion.

The US dollar-denominated AT1 sustainable sukuk is the latest in a $5 billion trust certificate issuance programme by Al Rajhi Bank, with an obliger rating of Aa3 Stable (Moody’s) / A- Positive (S&P) / A- Stable (Fitch).

The sukuk will be listed on the London Stock Exchange’s International Securities Market.