NCB sells SAR 1 bln sukuk through private placement

The National Commercial Bank (NCB), Saudi Arabia’s largest bank, said on Monday that it has sold sharia-compliant bonds, or sukuk, worth SAR 1 billion through a private placement.

The subordinated Tier I sukuk has no fixed redemption date, but they can be repaid on a predefined date, the bank said in a statement to Tadawul.

The sukuk will be used to diversify the bank’s funding sources and extend the maturity profile of its liabilities, NCB added.

Several Saudi lenders have recently issued riyal-denominated sukuk to tap into the liquid local investor pool to get cheaper, long-term finance to boost their capital.