Domestic Ramadan Sukuk Market Activity in Saudi Arabia

The Saudi Investment Bank, and National Commercial Bank have both been active recently in the Saudi Riyal denominated market with small domestic issuances.

Saudi Investment Bank Sukuk

The Saudi Investment Bank announces that on Tuesday 6 June 2017 it has successfully closed its transaction of SAR 285 million subordinated Tier I Sukuk, compliant with Islamic Sharia principles through a private placement offer in Saudi Arabia.

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 Sukuk are perpetual securities with no fixed redemption date. However, the Bank 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 Company acted as the Sole Lead Manager for this issuance.

NCB Sukuk

The National Commercial Bank (NCB) announces that on Thursday 5th June 2017 it successfully settled an issuance of subordinated Additional Tier 1 Capital Sukuk, in the amount of SAR 1.3 Billion, compliant with Islamic Sharia principles, through a private placement offer in Saudi Arabia.

Sukuk issuances such as this are intended to strengthen the Bank’s capital base in accordance with the Basel III framework and sustain its growth while maintaining healthy capital adequacy levels. Additionally, the Sukuk will extend the maturity profile of NCB’s liabilities while continuing to diversify its sources of funding.

The Sukuk are perpetual securities with no fixed redemption date. However, NCB has the right to call the Sukuk on a predefined date. All required approvals from the regulatory authorities have been obtained for the issuance. NCB Capital Company acted as Sole Lead Manager for the issuance.