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Debut of 'sustainable' sukuk for Saudi National Bank

Debut of 'sustainable' sukuk for Saudi National Bank

According to Reuters, Saudi National Bank, the kingdom’s largest lender that is 50.4 percent indirectly owned by the government, sold $750 million in its debut “sustainable” sukuk last week after demand surpassed $3.2 billion.

The five-year Islamic bonds were sold out.

Bankers predict that the Gulf will issue more debt for environmentally friendly purposes, spurred on by governments pushing plans to meet rising demand from investors concerned with environmental, social, and governance (ESG) issues.

The proceeds from SNB’s debt sale will be used for projects that are eligible under its Sustainable Finance Framework, such as funding renewable energy-generating facilities, including loans to develop such projects, as well as loans for tree planting. – Zawya-Reuters