BSF Completes a landmark USD 750 Million Sukuk Issuance
15/Jan/2025
Riyadh, 15 January 2025 – Banque Saudi Fransi (BSF) has successfully issued a USD 750 million sukuk, achieving several record-setting milestones that reinforce its position as a leader in Shariah-compliant finance and align with Saudi Arabia’s Vision 2030.
The sukuk, denominated in USD and listed on the London Stock Exchange, matures in five years and offers an annual yield of 5.375 percent. The issuance saw significant investor demand, with the orderbook peaking at USD 3.7 billion—representing a 4.9x oversubscription. This level of demand highlights the market’s strong confidence in BSF’s robust credit profile and strategic direction.
In a significant achievement, the sukuk was priced flat to the Saudi sovereign secondary sukuk curve. This reflects BSF’s ability to issue at levels that are typically out of reach for most regional financial institutions, highlighting its strong credit standing and investor trust.
At a re-offer spread of T+85 basis points (bps), the sukuk achieved the tightest credit spread for a Saudi bank issuer ever. This also represents the second-tightest Treasury spread for a fixed-income capital market issuance by any GCC financial institution. Furthermore, BSF priced the sukuk with no new issue concession, as the re-offer spread aligned with the fair value level.
The issuance also marks the largest oversubscription level for BSF to date. The bank’s proactive global marketing strategy, including a recent non-deal roadshow in Asia, contributed to a highly diversified orderbook with over 110 unique investors from across the GCC, UK, Europe, and Asia. The strong participation from global investors reflects the success of BSF’s targeted investor engagement efforts.
Bader Alsalloom, CEO of BSF, commented: “This sukuk issuance marks a significant milestone in BSF’s ongoing efforts to optimize funding activities and expand our global investor base. The strong demand and record-breaking metrics demonstrate the market’s trust in our financial stability and strategic vision. We remain committed to supporting Saudi Arabia’s economic transformation by providing innovative financial solutions while maintaining our leadership in Shariah-compliant finance.”
This successful transaction underscores BSF’s pivotal role in Saudi Arabia’s financial sector, strengthening its liquidity profile, expanding its presence in international capital markets, and contributing to the broader objectives of Vision 2030.
The sukuk, denominated in USD and listed on the London Stock Exchange, matures in five years and offers an annual yield of 5.375 percent. The issuance saw significant investor demand, with the orderbook peaking at USD 3.7 billion—representing a 4.9x oversubscription. This level of demand highlights the market’s strong confidence in BSF’s robust credit profile and strategic direction.
In a significant achievement, the sukuk was priced flat to the Saudi sovereign secondary sukuk curve. This reflects BSF’s ability to issue at levels that are typically out of reach for most regional financial institutions, highlighting its strong credit standing and investor trust.
At a re-offer spread of T+85 basis points (bps), the sukuk achieved the tightest credit spread for a Saudi bank issuer ever. This also represents the second-tightest Treasury spread for a fixed-income capital market issuance by any GCC financial institution. Furthermore, BSF priced the sukuk with no new issue concession, as the re-offer spread aligned with the fair value level.
The issuance also marks the largest oversubscription level for BSF to date. The bank’s proactive global marketing strategy, including a recent non-deal roadshow in Asia, contributed to a highly diversified orderbook with over 110 unique investors from across the GCC, UK, Europe, and Asia. The strong participation from global investors reflects the success of BSF’s targeted investor engagement efforts.
Bader Alsalloom, CEO of BSF, commented: “This sukuk issuance marks a significant milestone in BSF’s ongoing efforts to optimize funding activities and expand our global investor base. The strong demand and record-breaking metrics demonstrate the market’s trust in our financial stability and strategic vision. We remain committed to supporting Saudi Arabia’s economic transformation by providing innovative financial solutions while maintaining our leadership in Shariah-compliant finance.”
This successful transaction underscores BSF’s pivotal role in Saudi Arabia’s financial sector, strengthening its liquidity profile, expanding its presence in international capital markets, and contributing to the broader objectives of Vision 2030.
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