Saudi Arabia’s Bank AlJazira has successfully priced a $500 million perpetual Additional Tier 1 (AT1) sukuk, attracting robust investor demand that allowed the lender to tighten pricing from initial guidance.
The US dollar-denominated issuance was priced at a spread of 650 basis points over US Treasuries, improving from initial price thoughts that were set in the 7% yield range. Investor appetite proved strong, with the order book exceeding $1.5 billion, excluding commitments from the joint lead managers.
Structured as a Perpetual Non-Call 5.5-year (PerpNC5.5) sukuk, the transaction is scheduled to settle on June 24, 2026, following its pricing on June 17.
The sukuk will be listed on the International Securities Market of the London Stock Exchange, adding another benchmark transaction to the growing pipeline of Gulf debt issuances.
A syndicate of regional and international banks managed the offering, including Abu Dhabi Commercial Bank, Bank AlJazira, Arqaam Capital, Arab National Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs and JPMorgan as joint bookrunners. Standard Chartered acted as both bookrunner and documentation bank.
The strong oversubscription highlights continued investor interest in Saudi financial-sector capital instruments, even as global markets navigate shifting interest-rate expectations and geopolitical uncertainty.
