Al Rajhi Bank Raises $1 Billion from Offering Additional Capital Bonds

The Saudi Arabia-based Al Rajhi Bank announced yesterday that it has successfully raised $1 billion from the offering of additional capital bonds. This move represents the bank’s efforts to strengthen its capital base and support its future growth plans. The additional capital will be used for general corporate purposes and to enhance the bank’s liquidity framework.

The additional capital bonds were issued in two tranches, with a 5-year maturity for the first tranche and a 10-year maturity for the second tranche. The bonds were priced at 99.261% and 99.859%, respectively. The offering attracted strong demand from institutional investors, with an oversubscription rate of 2.4 times the offering size, reflecting the market’s confidence in Al Rajhi Bank’s financial stability and future prospects.

Al Rajhi Bank is one of the largest Islamic banks in the world and has consistently shown robust financial performance. In its recently released financial results for the first half of 2021, the bank reported a net profit of $1.5 billion, an increase of 44.8% compared to the same period last year. The bank’s total assets also grew by 11.2% to reach $112 billion, while its customer deposits increased by 14.7% to $90.5 billion.

Al Rajhi Bank’s successful offering of additional capital bonds is in line with the Saudi Arabian government’s efforts to support economic growth and diversify its economy. The bank’s strong financial position and capital base will enable it to play a pivotal role in financing infrastructure development projects, supporting small and medium-sized enterprises, and providing funding for various sectors of the economy.

As a responsible corporate citizen, Al Rajhi Bank is committed to integrating sustainable practices into its business operations. The bank’s financing activities align with the United Nations Sustainable Development Goals, particularly in the areas of poverty alleviation, renewable energy, and sustainable infrastructure. By raising additional capital through the offering of capital bonds, Al Rajhi Bank is well-positioned to continue its support for sustainable development initiatives.

Al Rajhi Bank’s successful offering of $1 billion additional capital bonds demonstrates its financial strength and market confidence. With a solid capital base, the bank is well-equipped to support economic growth and contribute to the development of various sectors in Saudi Arabia. Its commitment to sustainable development goals further enhances its reputation as a socially responsible financial institution. As Al Rajhi Bank continues on its growth trajectory, it remains focused on delivering value to its shareholders and bringing positive change to the communities it serves.