Al Rajhi Bank Completes U.S. Dollar Tier 2 Social Trust Certificate Offer

Al Rajhi Bank has completed its offer of U.S. dollar tier 2 social trust certificates. The bank operates in Saudi Arabia and provides various banking and investment services, including retail, corporate, treasury, and investment services. The offer is part of the bank's efforts to diversify its funding sources and meet its capital requirements.

Al Rajhi Bank, a prominent financial institution based in Saudi Arabia, has successfully completed its offer of U.S. dollar-denominated Tier 2 social trust certificates. The bank, which operates through various segments including retail, corporate, treasury, and investment services, has been actively diversifying its funding sources to meet its capital requirements.

The offer was part of Al Rajhi Bank's international trust certificate issuance program, which was approved by Saudi Arabia’s capital market regulator in May 2025. The program aims to raise a total of 10 billion riyals ($2.66 billion) through debt instruments Saudi Arabia’s Al Rajhi Bank to issue USD Tier 2 social sukuk^[1]. The bank has mandated several leading financial institutions, including Al Rajhi Capital Company, Crédit Agricole Corporate and Investment Bank, Citigroup Global Markets Limited, DBS Bank Ltd., Goldman Sachs International, HSBC Bank, JP Morgan Securities plc, MUFG Securities EMEA, Natixis, Nomura International, and Standard Chartered Bank, as Joint Lead Managers and Bookrunners for the proposed offer.

Al Rajhi Banking and Investment Corporation, the parent entity, provides a wide array of banking and investment services. These include current, family, investment, savings, and business accounts, along with various financing and insurance products. The company also offers digital and online banking services, investment in mutual funds, and local and international share trading services. Established in 1957 and headquartered in Riyadh, the bank operates through a network of multiple branches and ATMs Al Rajhi Banking and Investment Corporation (1120.SR)^[2].

The issuance of Tier 2 social trust certificates is a strategic move for Al Rajhi Bank to enhance its liquidity and financial stability. This move aligns with the bank’s broader objective of expanding its international footprint and securing diverse funding sources. As the bank continues to grow and innovate, investors and financial professionals can expect to see further developments in its financial strategies.

References:
Saudi Arabia’s Al Rajhi Bank to issue USD Tier 2 social sukuk^[1] https://www.zawya.com/en/capital-markets/bonds/saudi-arabias-al-rajhi-bank-to-issue-usd-tier-2-social-sukuk-ezvrlhm0
Al Rajhi Banking and Investment Corporation (1120.SR)^[2] https://finance.yahoo.com/quote/1120.SR/