Gulf International Bank raises SAR 2 billion through an oversubscribed bond issue
The issuance was well oversubscribed, achieving an attractive spread for GIB and reflecting investors’ high confidence in GIB’s financial strength and credit worthiness.
Rated A (Fitch – Foreign Currency)) / A3 (Moody's – Senior Unsecured Debt)), GIB’s bond issue is considered as the first financial institution issuance in the domestic Saudi Riyal market since September 2015.
Initial price guidance was communicated on the 11th of April 2016, which resulted in robust momentum allowing GIB to price the transaction within the guidance range. The order book was well diversified and investors comprised of banks, non-banking financial institutions, corporates, government agencies and investment companies within the Kingdom of Saudi Arabia.
Mr. Abdulaziz Al-Helaissi, GIB’s Chief Executive Officer, said: "We are very pleased with the successful closing of this bond issue at this attractive pricing level. The demand from a large number of highly respected entities reflects the market’s confidence in GIB’s experience and strong financial position.”
Mr. Al-Helaissi added: “This bond issue confirms GIB’s commitment to diversify its funding sources and utilise different structures to achieve the most suitable cost of funding for the bank.”
GIB Capital L.L.C. was Lead Coordinator for the offering, and the joint lead managers and book runners were GIB Capital L.L.C., Samba Capital & Investment Management Company, Riyad Capital, and Saudi Fransi Capital.