Saudi National Bank, the kingdom's largest lender that is 50.4% indirectly owned by the government, has tightened price guidance for its debut "sustainable" sukuk after orders topped $1.9 billion, a bank document showed on Wednesday, Trend reports with reference to Reuters.
The U.S. dollar-denominated five-year Islamic bonds will price between 85 and 95 basis points (bps) over U.S. Treasuries, tightened from initial price guidance of around 110 bps over UST, the document from one of the banks on the deal showed.
The debt issue, proceeds from which will be used for environmental or social-focused purposes, will be of benchmark size, which generally means at least $500 million, and is expected to launch later on Wednesday.