January 2022

Refinitiv Benchmark Services (UK) Limited

Saudi Arabian Interbank Offered Rate (SAIBOR)
Saudi Arabian Interbank Bid Rate (SAIBID)
Benchmark statement
Date of Issue: 06 December 2022
Date of Last Update: 19 January 2022
Document Classification: PublicContents
Introduction ........................................................................................................................................................................................... 3
Overview of methodology ...................................................................................................................................................................... 5
Potential limitations of the benchmarks ................................................................................................................................................. 7
Methodology changes and benchmark cessation ................................................................................................................................. 8
Further information ................................................................................................................................................................................ 9

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2Introduction
The Saudi Arabian Interbank Offered Rate (“SAIBOR”) is a daily benchmark reference rate representing the rate at
which contributor banks (each a “Contributor”) would be able to borrow unsecured interbank funds in Saudi Riyals.
The Saudi Arabian Interbank Bid Rate (“SAIBID”) is a daily benchmark reference rate representing the realised cost ofContributors’ wholesale unsecured funding in Saudi Riyals.
The Saudi Riyal deposit market and related markets exist primarily within Saudi Arabia. Refinitiv Benchmark Services(UK) Limited is the administrator of SAIBOR and SAIBID (“RBSL” or “Administrator”). SAIBOR and SAIBID are interest
rate benchmarks subject to the UK Benchmark Regulation 1 (“BMR”).
RBSL has adopted policies and procedures to comply with these regulations, including the requirements of Annex I of
the BMR that specifies specific regulatory regime for interest rate benchmarks; an independent oversight committee;
an independent external audit of compliance with the benchmark methodology and BMR. Annex I of the BMR sets out
the requirements for the Contributors’ systems and controls, which must include:–An outline of responsibilities within each firm, including internal reporting lines and accountability, including thelocation of submitters and managers and the names of relevant individuals and alternates;–

Internal procedures for sign-off of contributions of input data;–

Regular internal reviews of input data and associated procedures;–

Disciplinary procedures for actual or attempted manipulation of the benchmark;–Effective conflicts of interest management procedures and communication controls;–

Physical separation of submitters from interest rate derivatives traders and rules against collusion;–

Measures to prevent, or limit, inappropriate influence over persons involved in the provision of input data;–

No direct link between the remuneration of employees involved in the provision of input data and the
remuneration of, or revenues generated by, persons engaged in another activity where a conflict of interest
may arise;–Controls to identify any reverse transaction subsequent to the provision of input data;–

Detailed record-keeping in relation to a bank’s SAIBOR contributions; and–The compliance function reporting any findings to management on a regular basis.

All of these requirements are included within the Contributors Code of Conduct. All Contributors are required toacknowledge in writing via an attestation and an annual compliance certification that they have read the Code andcomply with it.
SAIBOR and SAIBID are not considered “critical” benchmarks for the purposes of Article 20 in the BMR and are notconsidered “significant” benchmarks for the purposes of Article 24 in the BMR.
SAIBOR and SAIBID are calculated using input data submissions (each a “Contribution”) by a panel of Contributor
banks2. Each SAIBID Contribution is a volume-weighted average price (VWAP) of eligible unsecured transactions
involving eligible counterparties subject to a waterfall that includes transactions in a related market and ultimately
1 The Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019.
2 See the SAIBOR Methodology for a list of the panel banks.

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3expert judgment. As SAIBOR is representative of the offered side of the market but transactions involving a wide rangeof counterparties are typically representative of the bid side of the market, Contributor banks will add a fixed spread
percentage to the VWAP calculated using the transacted rates before making a SAIBOR Contribution.
The SAIBOR definition is:
The Saudi Arabian Interbank Offered Rate (“SAIBOR”) benchmark is an indicative offer rate at which contributor
panel banks would be able to borrow unsecured interbank funds in Saudi Riyals, anchored in transactions where
possible together with a historical spread adjustment. A waterfall methodology is applied to enable a rate to be
published in a wide range of market circumstances.
The SAIBID definition is:
SAIBID is a benchmark representing the realised cost of contributor panel banks’ wholesale unsecured funding in
Saudi Riyals, anchored in transactions where possible. A waterfall methodology is applied to enable a rate to be
published in a wide range of market circumstances.
SAIBOR and SAIBID comprise six tenors: overnight, 1 week, 1 month, 3 months, 6 months and 1 year. SAIBOR and
SAIBID are considered to be reliable provided that:–

there is activity in the underlying unsecured Saudi Riyal deposit market, or in other unsecured instruments, orin the related markets, as per the methodology, that allows Contributors to establish a representative market
level for unsecured Saudi Riyal interbank deposit interest rates when making contributions, and–the panel of Contributors is sufficiently representative of the banks active in the Saudi Riyal unsecured
deposit market.

Both conditions should be satisfied in order for SAIBOR and SAIBID to be reliable reference rates for unsecured
wholesale funding rates. The panel banks as listed in the SAIBOR and SAIBID Methodology are a large portion of the
Saudi Arabia market, and as such are representative of the banks active in the unsecured deposit market in Saudi
Riyals in Saudi Arabia.
This benchmark statement shall be reviewed at least every two years, or whenever there is a material change to either
the type of the benchmark or to the Methodology used in the determination of the benchmark.

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4Overview of methodology
Input data for the determination of SAIBOR and SAIBID is contributed by a panel of Contributors for each of the
SAIBOR and SAIBID tenors (overnight, 1 week, 1 month, 3 months, 6 months and 1 year).
A waterfall is used by the existing panel of Contributors when making Contributions to RBSL for the determination of
SAIBOR and SAIBID. The waterfall comprises three levels as described below.
Level one of the waterfall uses volume weighted average prices from eligible wholesale funding transactions fromcounterparties including banks, central banks, government related entities, nonbank financial institutions, corporates
and, subject to a minimum threshold, retail clients.
Level two of the waterfall uses volume weighted average prices from eligible repo transactions (excluding repo
transactions with SAMA) in which the collateral may be any type of Saudi Riyal fixed income security and the samerange of eligible counterparties as per Level 1 applies. Contributors shall use expert judgment to apply a spread tosuch repo transactions to reflect the difference in the rate of secured repo transactions and the unsecured nature of
SAIBOR and SAIBID.
Level three of the waterfall requires the use of expert judgment by the individual Contributors subject to submission
procedures developed by each Contributor and where such submission procedures are subject to an appropriate level ofinternal governance and oversight.
As SAIBOR is representative of the offered side of the market but transactions involving a wide range of counterparties
are typically representative of the bid side of the market, Contributors using the Methodology will add a spread
percentage to the transacted rates derived from levels one and two of the waterfall before making a SAIBOR
Contribution. Level 3 submissions will use expert judgment of the rate of unsecured eligible transactions had any
occurred and will include the spread percentage.
From 02 January 2022 to 19 November 2022, the Spread Percentage is 16% and there is no Spread Cap. From 20
November 2022 to 30 November 2022, the Spread Percentage will be reduced gradually from 16% to 9%. From 01
December 2022 to 15 December 2022, a Spread Cap will be introduced at 50 basis points and then be reduced
gradually to 20 basis points. From 15 December 2022 onwards, the Spread Percentage will remain fixed at 9% and the
Spread Cap will remain fixed at 20 basis points. The mechanism for reviewing the Spread Percentage and the Spread
Cap is specified in the Methodology document.
If five of more Contributions are received, the Contributions shall be ranked, the highest two and lowest two discarded
and the remaining rates averaged to determine SAIBOR at each tenor. If fewer than five Contributions are received,
the benchmark will not be calculated or published.
Contributors may make and amend Contributions during the Contribution window from 11:00am KSA to 11:50am KSA.
In the event that fewer than five Contributions are received by 10:50am KSA, the Contribution window will be extended
to 12:30pm KSA. If five Contributions have not been received by 12:30pm KSA, the previous benchmark setting will berepublished with a notification of republication at 12:30pm KSA.
Subject to receiving at least five Contributions, SAIBOR and SAIBID are determined and published by RBSL at
12:00pm KSA or, if the Contribution window have been extended, at 12:30pm KSA. If an error is identified in thecalculation or in the published benchmarks before 1:00pm KSA, RBSL will use reasonable efforts to refix thebenchmark by 1:00pm KSA. The benchmarks will not be refixed if a Contributor identifies an error in its Contribution
after the publication time.
No models or method of extrapolation or interpolation are used by RBSL when determining SAIBOR and SAIBID.
Further, SAIBOR and SAIBID is not determined by means of a portfolio of constituents.

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No discretion is exercised by RBSL in the determination of SAIBOR and SAIBID. In the absence of their own
transactions in the underlying unsecured Saudi Riyal deposit market and other permitted instruments, Contributors will
first use Level 2 and then Level 3 of the waterfall.
The SAIBOR and SAIBID Contributor Code of Conduct requires Contributors to have written submission procedures,
policies, templates and records in place which should include a clear description of the input data, including the type ofdata taken into account in determining the Contribution, and is made available to RBSL upon request.
Expert judgment used by Contributors in determining a Contribution is evaluated ex post by RBSL using, primarily,
monitoring and surveillance controls and requesting Contributor documentation and records as required.
Where expert judgment is used by the Contributor in accordance with the Methodology, the Contributor Code of
Conduct requires that expert judgment shall be free from any undue or improper influence and shall not, for greatercertainty, take into consideration any factors that would be contrary to the “Improper Market Conduct” or “Conflicts ofInterest” provisions of the SAIBOR Contributor Code of Conduct.
The benchmark does not have corresponding ISINs. The Benchmark is determined using contributed input data and isan interest rate benchmark as per the BMR. Consequently, the Benchmark is not any of the following types ofbenchmark as specifically defined by the BMR: readily available data, regulated data, or commodity.

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6Potential limitations of the benchmarks
Determination of SAIBOR and SAIBID is dependent on receiving sufficient input data from Contributors for each
SAIBOR and SAIBID tenor. Technical problems or extreme market events may lead to an insufficient number ofContributions, resulting in no calculation or publication of SAIBOR and SAIBID. Further, RBSL considers that fivecontributing panel banks is a realistic minimum to ensure reliable Contributions and avoid concentration in sources of
input data.
There may also be insufficient market liquidity to support the panel banks when making Contributions. The first twolevels of the waterfall in the Methodology specify the type of counterparties and transaction types that may be used tocreate a VWAP for Contribution. The third level of the waterfall specifies the references that may be used to inform
expert judgment and these include transactions outside the specified tenor buckets, interpolation and extrapolations
from such transactions, other market instruments including derivatives and SAMA bills, macro-economic factors andchanges in credit standing.
The design of SAIBOR and SAIBID is therefore resilient in the event of a lack of liquidity in the underlying unsecured
Saudi Riyal deposit market alone. However, an extreme market event may lead to a loss of liquidity across a range ofmarkets, or to increased volatility in the spreads between related markets and the unsecured Saudi Riyal deposit
market, preventing the Contributors from making the Contributions required for the determination of SAIBOR and
SAIBID and resulting in no calculation or publication of SAIBOR and SAIBID.

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Methodology changes and benchmark cessation
The Methodology was adopted as being a reliable and resilient means for providing benchmarks that accurately
represents interest rates in the unsecured Saudi Riyal interbank deposit market. It ensures the representativeness of
SAIBOR and SAIBID with respect to actual funding levels experienced by major banks active in the market for
unsecured Saudi Riyals and anchors SAIBOR and SAIBID in actual transactions to the extent possible.
The SAIBOR and SAIBID Methodology is subject to a review in order to assess its ongoing fitness for purpose on atleast an annual basis. In the event that the review leads RBSL to believe that a change to the Methodology is required
and that the change is material in its effect on the benchmark, a market consultation will be conducted in accordancewith the RBSL Methodology Change Procedures in order to seek feedback from a representative range ofstakeholders. RBSL will review all feedback and, if following such review it resolves to proceed with the proposedchanges, RBSL will provide sufficient notice to users of the benchmark before implementing such changes.
Circumstances beyond the control of RBSL may necessitate an immediate change to or the cessation of thebenchmark. Such circumstances include without limitation (i) a loss of liquidity in the underlying unsecured Saudi Riyal
deposit market and similar markets, or in the related markets used to inform expert judgment and (ii) a loss ofContributors such that a representative panel of banks cannot be maintained.
In the event that an immediate change is required, RBSL will provide as much notice as is practicable and following
such change will conduct an internal review of the Methodology.
If it becomes necessary to cease calculation and distribution of the benchmark, RBSL will implement the RBSL
Benchmark Cessation Policy. This includes conducting an analysis of the estimated usage of the benchmark and,
where feasible, the selection of a credible alternative benchmark. In all cases, RBSL will take all reasonable steps toensure that all users and other stakeholders are made aware as soon as possible of any intention or possible necessity
to cease the benchmark.
Any material change to the Methodology or cessation of the benchmark may have an impact on any financial contract orfinancial instrument that references the benchmark or on the measurement of the performance of an investment fund thatuses or refers to the benchmark. A material change to the Methodology may lead to a change in the economic reality
represented by the benchmark and therefore to the economic exposure of any financial contract or financial instrumentthat references the benchmark. A cessation of the benchmark would require the selection of an alternative benchmark or
the implementation of any fallback procedures for financial contracts or financial instruments that reference thebenchmark. Any financial contracts or other financial instruments that reference the benchmark should be able towithstand, or otherwise address the possibility of changes to, or cessation of the benchmark.

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Further information
The Legacy Methodology, Enhanced Methodology and Contributor Code of Conduct documents provide additional
information and definitions of key terms and are available on RBSL’s website: www.lseg.com/en/ftserussell/benchmarks/interest-rate-benchmarks/saibor-rates.
For further information about SAIBOR and SAIBID, please contact RBSL at index_queries@lseg.com.

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