RIYADH: Tadawul-listed Al Rajhi Bank has announced the completion of the issuance of SR10 billion ($2.6 billion) Tier 1 SR-denominated sukuk, a bourse filing revealed. All retail subscribers that were part of the subscription application have received 100 percent of their orders. The settlement date of the Tier 1 SR-denominated sukuk commenced on Nov. 16 with over 125,000 subscribers. Following the conclusion of the Al Rajhi Bank Tier 1 sukuk, the bank said a total of 10 million sukuks will be issued at a par value of SR1,000 each. The sukuks, which are set to be listed and traded on the Saudi Exchange Market – also known as Tadawul – upon the completion of all regulatory requirements will offer an annual return of 5.5 percent to be paid quarterly starting from the settlement date. Surplus refunds have been provided to eligible investors on Nov. 16 and will be deposited in the accounts of those investors in accordance with the procedures adopted by the relevant banks. Al Rajhi Capital is the financial advisor and lead manager of the public offering. The Saudi Capital Market Authority’s green light for the offering was not considered as a recommendation to subscribe to the fund, as it merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met, the market regulator said. Al Rajhi Bank has reported a 19 percent profit surge to SR13 billion in the first nine months of 2022, bolstered by a 13 percent surge in operating income. Despite the announcement, Al Rajhi’s shares declined 0.23 percent to reach SR87.50 at the closing bell of Sunday. The increase in operating income was fueled by higher financing and investment income, fees from banking services, and exchange income, the Kingdom’s most valued bank noted. Founded in 1957 and considered the world’s largest Islamic bank by capital based on 2015 data, Al Rajhi Bank is a major investor in Saudi Arabia’s business and is one of the major joint stock firms in the Kingdom.