SAIB launches subordinated Tier I Sukuk

The Saudi Investment Bank (SAIB), on Monday, has successfully closed its transaction of SAR 215 million subordinated Tier I Sukuk, compliant with Islamic Sharia principles through a private placement offer in Saudi Arabia, the bank said in a bourse statement.

The Sukuk include salient features which enhances the bank's capital base and capital adequacy ratios. In addition, the Sukuk further diversifies the bank's funding sources and extends its maturity profile, the statement added.

The Sukuk are perpetual securities with no fixed redemption date.The bank, however, has the right to call the Sukuk on predefined dates.

All required approvals from the regulatory authorities have been obtained for the issuance. Alistithmar for Financial Securities and Brokerage Co. acted as the sole lead manager for this issuance.