Saudi Arabia’s Al Rajhi Bank has secured a $1.92 billion sustainability-linked Islamic syndicated loan, marking the largest financing from a Middle Eastern bank this year. The three-year, sharia-compliant facility attracted nearly 20 lenders, with coordinating banks including Emirates NBD Bank PJSC, HSBC Holdings, and Maybank Investment Bank Bhd. The loan, split into $1.2 billion and $705 million tranches, will be used for general corporate purposes, according to a person familiar with the deal.

This financing comes amid a liquidity crunch in Saudi Arabia, where loan growth has outpaced deposits as the country’s economy faces contraction. Bloomberg Intelligence projects that local banks may need to issue $10 to $15 billion annually in new debt through 2028 to sustain the nation’s investments. Middle Eastern banks have raised $50 billion in loans so far this year, up from $16 billion in the same period last year. Al Rajhi Bank, known for its rare large-scale Islamic loans linked to environmental, social, and governance metrics, had previously issued a $1 billion Islamic bond in May.