Saudi Awwal Bank (SAB) has tapped global debt markets with a bold $1.25 billion Tier 2 green bond, locking in strong investor appetite and marking another milestone in the Kingdom’s sustainable finance drive.
The deal, which carries a 10-year maturity, priced at a spread of 220 basis points over U.S. Treasuries—tighter than the initial guidance of around 245 basis points. Investors will pocket a semi-annual coupon of 5.947%.
Demand was nothing short of impressive. Orders surged past $3.3 billion, more than doubling the issue size, a sign of growing confidence in SAB’s credit story and the broader Gulf push toward green funding. The notes will trade on the London Stock Exchange’s International Securities Market, though they carry ratings of Baa2 from Moody’s and BB from Fitch—below the bank’s own A1/A grade.
Goldman Sachs International and HSBC took the reins as global coordinators, joined by a heavyweight syndicate of regional and international banks including Abu Dhabi Commercial Bank, Citi, DBS, Emirates NBD Capital, Mashreq, Mizuho, and Société Générale.
HSBC also played the specialist role of sole green structuring bank, underscoring the deal’s environmental credentials.
This issuance adds fresh momentum to the growing wave of sustainable bonds coming out of the Gulf, where financial institutions are increasingly blending profitability with purpose.
