Banque Saudi Fransi Plans US Dollar Certificates Issuance

Within its Trusted Certificate Issuance Program, Banque Saudi Fransi has revealed plans to offer certificates priced in US dollars.

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Strategic Financial Move

According to a statement on the Tadawul marketplace on Wednesday, the details of the offer's terms and magnitude will be decided based on the state of the market.

Issuance Structure and Target Investors

It is envisaged that the issue would be conducted via a special-purpose entity that will serve qualified investors in Saudi Arabia and abroad. This calculated action is in line with the bank's overarching financial goals and is a major step toward growing its Islamic finance division.

Utilization of Proceeds

The funds generated from this issuance will be directed towards supporting Banque Saudi Fransi's Islamic finance activities, reflecting a commitment to furthering its presence and impact in the financial market.

Key Mandates and Collaborative Efforts

Banque Saudi Fransi has appointed a notable lineup of financial institutions to oversee the issuance. The joint lead managers include Citigroup Global Markets Limited, Emirates NBD Bank, HSBC Bank plc, Merrill Lynch International, Mizuho International plc, and Saudi Fransi Capital. This collaborative effort underlines the strategic approach taken by the bank in engaging established partners to ensure the success and efficiency of the issuance process.

Historical Context and Previous Issuance

Banque Saudi Fransi successfully issued $700 million of five-year dollar-dominated bonds as part of its Medium-Term Note Program in 2022. These bonds, with a five-year maturity length, were later listed on the London Stock Exchange, marking a significant financial milestone for the bank.

Forward Outlook

The decision to embark on this new issuance reinforces Banque Saudi Fransi's commitment to diversifying its funding sources and optimizing its financial strategies. The bank's strategic moves in the financial landscape underscore its proactive stance in adapting to market conditions and leveraging opportunities for sustainable growth.

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