July 10, 2024

Saudi National Bank Becomes First Saudi Institution to Access Formosa Market with $500 Million Bond 🇸🇦

Saudi National Bank (SNB) has become the first financial institution in Saudi Arabia to access the Taiwanese Formosa market, issuing a $500 million five-year senior unsecured floating-rate note bond. This pioneering move underscores SNB’s commitment to advancing the Kingdom’s financial sector.

The issuance, part of SNB’s $5 billion Euro Medium Term Note Programme, exceeded initial expectations, with strong investor demand leading to an increase from $300 million to $500 million. The final pricing was set at a secured overnight financing rate of +120 basis points, reflecting efficient pricing below SNB’s five-year US sukuk levels.

SNB CEO Tareq Al-Sadhan expressed satisfaction with the robust investor demand, emphasizing the bank’s efforts to expand its reach and foster new relationships. Established in April 2021 from the merger of National Commercial Bank and Samba Financial Group, SNB is the largest financial institution in Saudi Arabia by total assets.

Share article