Saudi Arabia’s Alinma Bank has successfully raised $500 million through a perpetual Additional Tier 1 (AT1) sukuk, reflecting sustained investor appetite for Islamic capital instruments across global markets.
The issuance, structured with a non-call 5.5-year profile, was priced at par with a fixed resettable coupon of 6.625%. Demand proved strong, with the order book exceeding $1.7 billion excluding lead manager interest, underscoring robust participation from institutional investors.
The deal was initially marketed with price guidance in the 7.125% area before tightening, supported by favourable market conditions and steady demand for Gulf financial assets. The sukuk is expected to be listed on the London Stock Exchange’s International Securities Market under Regulation S.
Saudi’s Alinma Bank prices $500mln PNC 5.5-year AT1 sukuk at a time when regional lenders are increasingly relying on hybrid capital instruments to strengthen regulatory buffers while maintaining growth in lending capacity.
The transaction also comes as Gulf banks continue to diversify funding channels through international debt markets, particularly as infrastructure spending, digital transformation, and economic diversification programmes expand across the region.
Earlier in the month, the bank also launched a separate Saudi riyal-denominated AT1 sukuk programme, further reinforcing its active approach to capital management and market funding strategy.
In a broader context, Saudi’s Alinma Bank prices $500mln PNC 5.5-year AT1 sukuk highlights ongoing confidence in Saudi banking assets, alongside continued investor interest in Sharia-compliant structures that combine yield with regulatory capital strength.
