WarbaBank

Al-Thuwaini:

• The strong participation on both transactions reflects investors’ confidence in debt capital market capabilities.
• Warba’s expertise in sukuk has garnered global attention which firmly establishes its position as a primary institution for Islamic debt instruments for investors and issuers, alike.

Warba Bank announced Riyad Bank’s USD 750 million perpetual additional tier 1 capital sukuk offering, which found both regional and global success. Warba Bank acted as Joint Lead Manager and Joint Bookrunner on the transaction which was led by HSBC, Kamco Investment Company, Merrill Lynch International, Mizuho International plc, Morgan Stanley & Co. International, Riyad Capital, SMBC Nikko Capital Markets Limited, Standard Chartered Bank as Joint Lead Managers and Bookrunners. Books opened on Thursday, September 26th, 2024, and closed on the same day, received great interest from regional and international market participants, as the order book reached USD 3.6 billion, more than four times the issuance size.

Warba Bank said in a press statement that the USD 750 million “Non-Callable in 5 years” perpetual sukuk was successfully issued with a fixed profit rate of 5.5% which will be reset in 5.5 years from the issuance date if the sukuk don’t get called by then.The Sukuk were listed on the International Securities Market (ISM).

Warba Bank also announced the successful issuance of AerCap’s debut sukuk offering via USD 500 million, 5 Year senior unsecured sukuk with a fixed profit rate of 4.50%. The issuance was priced at a discount, with a reoffer price of 99.338% to yield 4.65%.The transaction was successfully led by Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, J.P. Morgan and KFH Capital as Joint Lead Managers & Bookrunners with Warba Bank supporting the transaction as Co-Lead Manager. The Sukuk were listed on the Global Exchange Market of Euronext Dublin and generated and order book of USD 1.375 billion, more than two and a half times the issuance size.

The strong demand for the Sukuk was evident through its diverse allocation, which saw significant participation from a wide range of institutional investors across the globe.

In this context, Thuwaini Khaled Al-Thuwaini, Chief Investment Banking Officer at Warba Bank, said, “With the confidence of the market in hand, we succeeded in closing the sukuk issuance amid excellent market participation and reaction, which is a testament to Warba Bank’s strategic foresight and collaboration. It is a victory that reflects not only the strength of the offering but also the pulse of the market’s confidence and enthusiasm.”

Al-Thuwaini pointed out the importance of Islamic financing tools and their role in strengthening global financial markets, which is evidenced by the level of demand and interest of global investors in recent sukuk issued by regional corporates and banking institutions. He underscored Warba Bank’s path to remain a significant player in the debt capital markets for years to come by continuing to focus on growth and expansion as Warba Bank aims to extend its reach and services to both institutional and individual investors through its commitment to ethical banking and innovative strategies.