Gulf International Bank – Saudi Arabia (GIB KSA), a leading bank in the Kingdom, has successfully issued its first Tier 2 Sukuk worth SAR 1.5 billion under its newly established SAR 3 billion Tier 2 Sukuk programme.

The Sukuk, which has a tenor of 10 years with a call option after five years, was oversubscribed by investors, reflecting the strong confidence in GIB KSA’s credit profile and growth prospects.

The Sukuk programme is part of GIB KSA’s strategic plan to support its balance sheet expansion and contribute to the Kingdom’s Vision 2030 goals of economic diversification and development.

Abdulaziz Al-Helaissi, GIB’s Group Chief Executive Officer, said: “We are very pleased with the outcome of our debut Tier 2 Sukuk issuance, which demonstrates the strong demand for our Sukuk in the local Saudi market. The Sukuk programme will enable us to diversify our funding sources and pursue our growth ambitions in the Kingdom, where we see tremendous opportunities across various sectors.”

Osamah Shaker, GIB Capital’s Chief Executive Officer, said: “We are proud to act as the sole arranger for GIB KSA’s Sukuk programme and inaugural issuance. The successful transaction showcases our expertise and capabilities in providing innovative and tailored solutions to our clients, as well as our deep understanding of the market dynamics and investor preferences.”

GIB KSA, which is headquartered in Al Khobar, operates branches in Riyadh and Jeddah, and offers a full range of banking services, including corporate banking, treasury, retail banking, and investment banking through its subsidiary, GIB Capital.