Auto Loans Startup Raya Financing Raises SAR 300M Through AT1 Sukuk

Saudi Arabia’s Raya Financing Company has raised SR 300 million ($80 million) through the issuance of a perpetual Additional Tier 1 (AT1) sukuk, according to a regulatory disclosure.

The sukuk carries an 8.5% annual coupon, payable quarterly. The instrument is callable after five years and on each subsequent periodic distribution date if not redeemed at the first call date.

The issuance is listed on the Saudi Exchange (Tadawul) and was executed under Raya’s SR 500 million Additional Tier 1 Capital Sukuk Programme.

Raya Financing holds a BBB- (Sau) credit rating from Fitch. The AT1 structure qualifies as regulatory capital and is typically used by financial institutions to strengthen capital buffers.

Impact46 acted as financial advisor and sole arranger for the transaction.