Bank Albilad plans to issue up to SAR 3 bln Tier 2 sukuk

Logo of Bank Albilad

Bank Albilad announced its intention to issue a domestic SAR-denominated Tier 2 sukuk for up to SAR 3 billion, by way of a private placement in Saudi Arabia.

The bank mandated Albilad Capital as the sole arranger and dealer for the potential offer, according to a bourse statement today, March 25, 2021.

The number and value of the sukuk issue will be determined based on the market conditions.

The proceeds of the offer will be used to strengthen the bank’s capital base, as it is intended that the Tier 2 sukuk will comprise Tier 2 capital for Saudi Arabian regulatory purposes, and to grow its banking and finance activities, the statement added.

The potential offer may also include an option for the holders of the previously issued SAR 2 billion sukuk (due in 2026) to change their investment to the new Tier 2 sukuk, subject to the terms and conditions.

The offer will be subject to the approval of the competent regulatory authorities and will be made in compliance with applicable laws and regulations.