Global law firm Norton Rose Fulbright has advised Raya Financing Company on the approval it has received from the Saudi Capital Market Authority (CMA) to establish an Additional Tier 1 (AT1) perpetual Sukuk issuance programme and the offering of Sukuk under the programme on a "public offer" basis to investors in the Kingdom of Saudi Arabia.

This transaction marks a significant milestone for the Kingdom's capital markets, as it represents the first ever AT1 Sukuk to be issued by a non-banking financial institution (NBFI) in Saudi Arabia on a public offer basis, and only the second ever AT1 Sukuk to be issued by an NBFI in the Kingdom. Norton Rose Fulbright - a market leader in this area - previously advised Tamweel Al Oula on the first such issuance which was completed on a private placement basis.

Raya Financing Company is a leading non-bank financial institution that provides vehicle and fleet financing solutions to individual and SME customers across the Kingdom.

The Norton Rose Fulbright team advising on the transaction was led by partner Hamed Afzal, supported by senior associates Yousef Al Amly and Ganna Vlasenko, associate Hania Meshref and trainee solicitors Mia Blundell and Joseph McQuillan.

Hamed Afzal said:

"We are delighted to be supporting Raya Financing Company on this landmark transaction, which underscores the growing sophistication of Saudi Arabia's debt capital markets and the appetite for innovative financing solutions among issuers from a plethora of sectors, including non-bank financial institutions."

Norton Rose Fulbright's capital markets lawyers cover the full range of equity and debt capital markets matters, from domestic and international equity offerings and multiple listings for large multinationals, to investment grade and high-yield debt transactions for sovereigns, banks, export credit agencies, multilaterals, institutional investors and international companies.

This transaction comes off the back of the team being named Capital Markets Team of the Year by Islamic Finance News last year and winning Restructuring Deal of the Year at the Global Banking & Markets Saudi Arabia Awards 2025 for its role on Arkad Engineering & Construction Company's SAR 2.86 billion perpetual Sukuk, as well as recently advising Bidaya Finance on the approval it received from the CMA to establish a SAR1 billion Sukuk issuance programme.