The deal is split between a three-year tranche and a five-year tranche, with margins of 70 basis points and 100 basis points over the London interbank offered rate (libor).

Banks are being invited to take up to $35m of the debt, with up to 10 banks expected to participate in the deal. The proceeds of the issue will be used for the general funding of the bank’s operations.

In a sign of how much the market has changed for local banks looking to access dollar funding, when Saudi Fransi last accessed the loan market in June 2005 it paid only 35 basis points over libor for a $650m five year loan.