Islamic Finance

Saudi's Bank Albilad planning riyal Tier 2 sukuk

BY Staff Writer

25 Mar 2021

News

Salaam Gateway

Saudi Arabia's Bank Albilad is planning to issue a riyal-denominated Tier 2 sukuk.

The issue of up to 3 billion riyals will be sold via private placement, the bank said in a filing with the Saudi stock exchange on Thursday (March 25).

The size of the sale will depend on market conditions, it said.

Proceeds from the Tier 2 sukuk will be used to strengthen the bank's capital base.

The potential sukuk could include an option for buyers of the bank's sukuk of 2 billion riyals, due in 2026, to exchange their investment in that earlier deal with the upcoming Tier 2 sukuk.

Albilad Capital is the sole arranger and dealer for the planned sale.

tags:

Sukuk