Saudi First Bank announced its intention to issue green Tier 2 capital bonds denominated in US dollars through a private offering to qualified investors inside and outside the Kingdom, a move aimed at supporting its financial strategy and strengthening its commitment to sustainable financing.
Saudi Bank
The bank explained, in a statement published on the Saudi Tadawul platform, that this issuance will be conducted within the framework of its medium-term bond program, noting that the value and terms of the offering will be determined later, based on market conditions at the time of execution.
The bank added that the offering aims to:
Tier 2 capital enhancement
Support the Bank's general purposes
Achieving its financial and strategic goals
Alignment with the Bank's Sustainable Debt Framework
Entities appointed as issue managers
To ensure the success of the offering, the bank appointed a number of major international and regional financial institutions as issue managers, including:
HSBC Bank PLC (HSBC)
Goldman Sachs International
Abu Dhabi Commercial Bank B.J.S.C. (ADCB)
Citigroup Global Markets Limited (Citi)
DBS Bank Ltd (DBS)
Emirates NBD Capital PJSC
Mashreq Bank B.S.C.
Mizuho International PLC (Mizuho)
Société Générale
🌱 Moving towards sustainable financing
This issuance comes in the context of the growing trend among Saudi and Gulf banks towards sustainable financing instruments, in line with Saudi Vision 2030 and the green transformation goals. Green bonds reflect the issuing entities' commitment to using the proceeds to finance environmentally friendly projects, such as renewable energy and sustainable infrastructure.
Important notes
Tier 2 bonds are used to bolster the capital base, without affecting shareholders' equity.
Final pricing and allocation will depend on investor response and market conditions.
The announcement does not constitute a final commitment to release until the procedures are completed.
