Saudi National Bank's $1.25bn dollar-denominated Sukuk oversubscribed
Saudi National Bank's (SNB) issuance of US$1.25 billion in dollar-denominated Tier 2 notes, at a profit rate of 6.00 per cent, has been heavily oversubscribed.
Bloomberg reported that order books exceeded $2 billion, according to a person familiar with the matter, who asked not to be identified.
The bank also informed Tadawul that it will redeem a SAR 4.2 billion (US$1.12 billion) Tier 1 capital sukuk at face value on June 30, five years after the date of issuance.
Bloomberg added that the bond may be priced as soon as Tuesday, with proceeds set to be used in part to strengthen SNB's capital base.
The bank is issuing 6,250 Sukuks at a par value of US$200,000. Maturity period of the Sukuk is 10 years, but callable after five years. The Notes will be listed on the London Stock Exchange's International Securities Market.
Saudi banks have been increasing their external debts recently, but global ratings agency S&P said in a report last month that it did not translate into any 'significant vulnerabilities'.
Lower oil prices and geopolitical disturbances in the region have raised concerns, but S&P said: 'While the absolute numbers may appear significant, we expect Saudi banks' net external debt position to remain at a manageable level of about 4.1 per cent of total lending by the end of 2028.'
As for the redeemed bond of SAR4.2 billion, SNB informed Tadawul: 'The Sukuk was issued on 30 June 2020 for an aggregate value of SAR4,200,000,000 and in accordance with its terms and conditions, Saudi National Bank, as issuer, intends to call the Sukuk on 30 June 2025. Regulatory approval has already been obtained.' The bank stated that the redemption amount, together with any accrued but unpaid periodic distributions, will be paid on the specified day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
43 minutes ago
- Al Etihad
S&P Global maintains UAE credit ratings
19 June 2025 00:23 MAYS IBRAHIM (ABU DHABI)S&P Global Ratings has assigned the UAE a sovereign credit rating of 'AA' for long-term, and 'A-1+' for short-term foreign and local currency obligations, with a stable report cited the county's solid fiscal and external positions, prudent policymaking and resilient economic headwinds from lower oil prices and a global economic slowdown, S&P forecasts that the UAE's economy will remain resilient, growing at an average rate of about 4% annually between 2025 and will be driven primarily by buoyant non-oil sector activity, public investment, and a measured increase in oil production as OPEC+ quotas ease. S&P also projects the UAE's consolidated fiscal surpluses will average 3.2% of GDP over the forecast period, assuming Brent oil prices of $60 per barrel (bbl) in 2025 and $65/bbl through 2028. The country's consolidated net asset position is expected to rise to an estimated 177% of GDP through 2028, supported by continued fiscal surpluses and investment income on liquid assets. "The exceptional strength of the government's consolidated net asset position provides a buffer to counteract the effects of oil price swings and geopolitical tensions in the Gulf region on economic growth, government revenue, and the external account," S&P debt will remain stable at about 28% of GDP, as the federal government and individual emirates such as Abu Dhabi plan local currency debt issuances to develop domestic capital growth will be underpinned by public investment, economic diversification efforts, and increasing trade and foreign investment. The report cited major projects set to boost tourism revenue streams, such as the Saadiyat cultural district and Disney Park in Abu Dhabi, and the Wynn integrated resort in Ras Al UAE's Comprehensive Economic Partnership Agreements (CEPAs) with 27 trade partners should cushion the impact of higher global trade tariffs, to some extent, according to S& added that the potential impact on the UAE from the proposed 50% US tariff on steel and aluminum will only be modest if no agreement is reached. The UAE exported around $1.4 billion (0.3% of GDP) worth of steel and aluminum products to the US in 2023 – only 4.3% of its total non-oil exports. S&P also highlighted structural measures introduced by the UAE to improve its business environment. These include a foreign direct investment law that permits foreign investors to fully own businesses in various sectors, liberalised personal and family law, and the Golden Visa Programme, which "supports talent retention by granting long-term residency to investors, entrepreneurs, and skilled professionals.""We anticipate that these measures will increase labour market flexibility, investment, and foreign worker inflows. This will be balanced by the nationalisation of the workforce, or 'Emiratisation' policies," it stated. The sharp escalation of the Israel-Iran conflict presents potential risks to GCC sovereigns. However, S&P believes the UAE's substantial assets and record of domestic stability mitigate vulnerabilities to external shocks. "The Abu Dhabi Crude Oil Pipeline has the capacity to deliver about 50% of the emirate's oil exports directly to the Fujairah terminal on the Indian Ocean, diversifying its shipping routes. Through CEPAs, the UAE is also securing alternative trade routes to the Red Sea," it explained.
Khaleej Times
2 hours ago
- Khaleej Times
Sharjah to set up new family court and alimony fund
Sharjah has approved the creation of a new Family Court to specifically handle family-related cases and support family wellbeing. The Judicial Inspection Department will draft new regulations to strengthen family stability. A new committee will also be formed to manage and protect funds that belong to children and others in similar situations. This committee will develop a financial plan to ensure that these funds are handled wisely and protected, always keeping the best interests of the children in mind. They will also provide the Council with regular updates on their activities. In addition, the Judicial Council on Wednesday announced a special alimony support fund to help individuals, especially women and children, receive urgent financial support when the responsible party (like a husband or father) cannot pay due to legal or financial reasons. This initiative aims to provide better support and fairness for families in the emirate. The money given out by the fund will eventually be collected from the person who is supposed to pay the alimony. Sheikh Sultan bin Ahmed bin Sultan Al Qasimi, Deputy Ruler of Sharjah and Chairman of the Judicial Council, chaired the meeting on Wednesday. During the meeting, several important topics were discussed as part of the ongoing efforts to make the legal system better, improve the efficiency of the courts, and ensure social support for families.
Khaleej Times
3 hours ago
- Khaleej Times
World's largest udon restaurant chain set to open in UAE
Marugame Udon, the world's largest udon restaurant chain with over 1,100 outlets globally, is set to launch in the UAE. The launch is made possible through a strategic partnership between Opal Food Concepts and Toridoll Holdings, the global parent company behind Marugame Udon, along with the support of the West Zone Group. This collaboration brings together Opal's commitment to culinary innovation with Toridoll's global expertise and West Zone's deep-rooted presence in UAE retail and hospitality. 'Marugame Udon is more than just a restaurant — it's an experience that brings people closer to Japanese culture through honest, handcrafted food,' said Razeen Parambil, Founder and Director of Opal Food Concepts. 'We're proud to introduce this global favourite to the UAE and are confident it will quickly become a beloved destination for quality, affordable dining.' As an initial target, the company plans to open 10 locations in the UAE over the next five years, strategically expanding access to high-quality Japanese dining experiences for residents and visitors alike. The inaugural Marugame Udon restaurant is set to open soon, warmly welcoming diners to an exceptional and authentic Japanese culinary journey. As Marugame Udon opens its doors in Dubai, it proudly presents a thoughtfully curated menu that reflects the rich diversity and culinary preferences of the UAE. At the heart of this offering is a commitment to authenticity and inclusivity — every dish is Halal-certified, ensuring an inviting and accessible Japanese dining experience for all. In celebration of the Dubai launch, Marugame Udon introduces exclusive regional specialties crafted to appeal to local tastes. Highlights include a hearty Vegetarian Japanese Curry, perfect for plant-based diners, and the bold Spicy Maze Udon, made for those who crave intense flavors. Spice lovers will also enjoy the complimentary green chili at the condiment station, allowing each guest to tailor their bowl with an extra kick. Recognising the region's strong preference for chicken, the brand also debuts the indulgent Chicken Katsu Curry Udon, which pairs a crispy chicken cutlet with rich Japanese curry, and the comforting Teriyaki Chicken Udon, available in both regular and kid-friendly portions. With these innovative additions, Marugame Udon not only delivers on its promise of authentic Japanese comfort food but also ensures that every guest — from seasoned udon fans to first-time visitors — feels right at home. Central to Marugame Udon's unique appeal is the captivating 'Live Noodle Theater,' an interactive culinary performance where guests can watch chefs expertly prepare fresh, flavorful udon noodles right before their eyes. Each noodle is crafted daily by hand, ensuring unmatched freshness and an authentic taste that reflects the heart of Japanese cuisine.
