Gulf International Bank – Saudi Arabia (GIB KSA), a key investment arm supported by the kingdom’s sovereign wealth giant, the Public Investment Fund (PIF), has made a strong market entrance with its first-ever Additional Tier 1 (AT1) bond.
The bank priced its $500 million perpetual non-call 5.5-year AT1 bond at par, locking in a 6.625% coupon and a reset margin of 282.5 basis points. Demand was robust, with orderbooks exceeding $1.1 billion — more than double the issue size — reflecting solid investor appetite for high-quality GCC financial paper.
Initial price guidance began in the 6.875% range before tightening to the final level, signaling confidence in the issuer’s fundamentals and Saudi Arabia’s broader banking sector stability.
The issuance, listed on the London Stock Exchange’s Main Market, forms part of GIB KSA’s $1.5 billion Additional Tier 1 Capital Note Programme. Moody’s rates the bank A2 (stable) and Fitch assigns an A- (stable) outlook.
Citi and GIB Capital acted as joint global coordinators, with a consortium including Abu Dhabi Commercial Bank, BofA Securities, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, SMBC, and Standard Chartered Bank as joint lead managers and bookrunners.
The deal arrives amid a busy week for regional lenders tapping global debt markets. Saudi Arabia’s Alinma Bank recently priced a $500 million Tier 2 sukuk at 5.792%, Sharjah Islamic Bank floated a $500 million sukuk at 4.60%, and the National Bank of Kuwait issued a $300 million Tier 2 bond carrying a 5.25% coupon.
GIB’s successful debut adds momentum to a growing wave of GCC bank issuances, as institutions leverage favorable market conditions to strengthen capital buffers and diversify funding sources.
