NCB sells $1.25 bln Tier 1 sukuk, say sources

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National Commercial Bank (NCB) sold additional Tier 1 sukuk at a value of $1.25 billion (SAR 4.69 billion), Reuters reported, citing sources.

The bank received more than $4.5 billion in orders for the debt sale and sold the bonds at 3.5%, according to a document seen by Reuters.

NCB was seeking to raise $1 billion through the sukuk, the sources said, adding that it would use the proceeds of the issuance to bolster its Tier 1 capital and for general corporate purposes.

According to data available with Argaam, NCB announced the start of issuance of NCB Tier 1 Sukuk Ltd., an exempted company with limited liability in the Cayman Islands, from Jan. 20, until Jan. 26.