Discussions have been taking place with a number of institutions but no mandates have been awarded yet, IFR said.

Samba Financial Officer Abdul Haleem Sheikh could not be reached for comment.

Samba would be the latest Saudi institution to consider a bond issue.

Banque Saudi Fransi (BSF) is meeting investors in Europe, Asia and the Middle East next week to test the waters for potential debt issuance, executives at the bank said on Wednesday.

A debt sale would be the second this year after Saudi property developer Dar Al-Arkan issued a smaller-than-expected five-year Islamic bond, or sukuk, worth $450 million and priced at 10.75 percent.