NCB plans to redeem 2015 Tier 1 sukuk worth SAR 2.7 bln

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National Commercial Bank (NCB) is planning to redeem its SAR 2.7 billion Tier 1 sukuk on March 23, 2021, at face value, the lender said in a statement to Tadawul.

The sukuk were offered through private placement on Dec. 23, 2015, at a total of SAR 2.7 billion, qualifying as Tier 1 subordinated capital in accordance with the Basel III framework.

NCB elected to redeem the sukuk, at the contractual first call date of March 23, 2021, where the face value of the sukuk and any periodic profit distribution amount payable (for the period ending March 23, 2021) will be transferred to sukukholders on that date, based on their respective holdings as of March 8, 2021.

The necessary regulatory approvals were obtained for this purpose, the statement added.