Banque Saudi Fransi announces issuing US Dollar Certificates
A new Trust Certificate Issuance Programme with certificates priced in US dollars has been unveiled by Banque Saudi Fransi. In a filing with Tadawul on Wednesday, it was said that the amount and circumstances of the offering will be decided by current market conditions.
Issuance Structure and Purpose
The issuance is anticipated to take place through a special-purpose vehicle and will target eligible investors both in Saudi Arabia and internationally. The funds raised from the issuance are earmarked for deployment in the bank's Islamic finance business, aligning with its strategic financial objectives.
The market conditions at the time of issuance will have an impact on the size and specific terms of the offer, as is customary in financial markets. This adaptive approach allows the bank to optimize the offering based on factors such as investor demand, prevailing interest rates, and overall market sentiment.
Joint Lead Managers
To facilitate and manage the issuance process, Banque Saudi Fransi has appointed a group of reputable financial institutions as joint lead managers. The appointed entities include Citigroup Global Markets Limited, Emirates NBD Bank, HSBC Bank plc, Merrill Lynch International, Mizuho International plc, and Saudi Fransi Capital.
Continued Financial Strategy
This move follows the bank's successful issuance of $700 million in five-year dollar-denominated bonds in 2022 under its Medium Term Note Program. The notes, with a maturity period of five years, were subsequently listed on the London Stock Exchange, showcasing Banque Saudi Fransi's commitment to diversifying its funding sources and optimizing its capital structure.
The decision to tap into the US dollar-denominated certificate market underscores Banque Saudi Fransi's strategic approach to fundraising and capital management. By leveraging international capital markets, the bank aims to strengthen its position in the Islamic finance sector and enhance its ability to support key initiatives and projects in Saudi Arabia and beyond.