Bank AlJazira completes issuance of SAR 2 bln Tier 2 sukuk

Bank Aljazira’s headquarters 

Bank AlJazira completed today, Dec. 8, the issuance of a domestic SAR-denominated Tier-2 sukuk, worth SAR 2 billion, through private placement.

The total number of sukuk reached 2,000 at a par value of SAR 1 million, the bank said in a bourse filing.

The 10-year sukuk are callable by the bank after five years from issuance. The sukuk pay six-month SAIBOR return of 155 basis points.

The sukuk may be redeemed prior to the maturity date in certain cases, such as due to a capital event, a tax event, an event of default, or an issuer call option, each pursuant to terms and conditions of the sukuk.

The bank has appointed AlJazira Capital and HSBC Saudi Arabia as the joint lead managers and bookrunners for the offering.

Any other relevant material developments will be announced in due course as required by the relevant rules and regulations, the statement added.