Speed up for "2030 Vision"! SNB joins the Saudi Bank bond issuance army to raise more funds.

The Saudi National Bank (SNB) is set to issue US dollar-denominated bonds, continuing the trend of the country's financial institutions supporting a $2 trillion economic transformation plan through large-scale financing. According to a source familiar with the matter, SNB has appointed several banks to prepare for the issuance of a 10-year subordinated bond, with a preliminary pricing of around US Treasury yield plus 235 basis points. The order size has already exceeded $2 billion. The bond is expected to be priced as early as Tuesday, and the funds raised will be used in part to enhance the bank's capital. This bond issuance makes SNB the latest participant in the surge of subordinated bond issuances by Saudi financial institutions this year, boosting the country's position in the global bank subordinated debt market. Saudi banks play a crucial role in advancing Crown Prince Mohammed bin Salman's "Vision 2030" reform plan and are providing credit support for projects such as the Red Sea Tourism Resort and the 2034 World Cup venues through continuous expansion of bond issuances. Saudi finances are currently facing triple pressure from falling oil prices, slowing economic growth, and surging investment demand, leading to a continuous increase in funding needs. Issuing subordinated debt has become an important means for Saudi banks to release credit space. SNB and other institutions are also exploring the disposal of non-performing loans through securitization transactions, with the first major transaction expected to be completed within the year. Earlier this month, SNB completed the issuance of a SAR 1.73 billion (USD 461 million) Islamic Sukuk. The bond issuance was jointly managed by top investment banks such as Goldman Sachs and JPMorgan.