Bank Aljazira set to issue $500 mln Tier I capital certificates

Logo of Bank Aljazira

Bank Aljazira’s BAJ Sukuk Tier 1 Ltd, a special purpose vehicle (SPV) incorporated in the Cayman Islands, is set to issue Tier I capital certificates at not more than $500 million, the bank said in a bourse filing today, June 20.

The issue will take place via a private placement, in which certificates can be redeemable after five years from the date of issuance.

The bank mandated Alinma Investment, AlJazira Capital and J.P. Morgan Securities plc as joint lead managers and bookrunners for the potential offer.

The exact value and terms of the issuance will be determined later, subject to the market conditions.

The issuance will be used to enhance Tier 1 capital and other general corporate purposes and is subject to the approval of the relevant regulatory authorities.

Any updates will be duly revealed, the statement added.