Banque Saudi Fransi Says Completes SAR2bn Capital-Boosting Sukuk

Banque Saudi Fransi, the kingdom’s fourth-largest listed lender, has completed a capital-boosting sukuk issue worth SAR2 billion ($533 million), it said in a statement on Thursday.

The Islamic bond, which has a ten-year lifespan but with an option for the bank to repay investors after the fifth year, is priced at 140 basis points over the three-month Saudi interbank offered rate (Saibor).

The transaction, which will boost the bank’s Tier 2 – or supplementary – capital, will support Banque Saudi Fransi’s capital base and future growth, the statement added.

Bankers told Reuters earlier this month that the bank would complete the deal by the end of June, the latest Saudi lender to sell a capital-boosting sukuk to replenish reserves after a period of sustained lending growth.