Alinma Bank has named banks for its new US dollar-denominated additional Tier 1 (AT1) sustainable sukuk.
The issuance is part of the bank’s AT1 Capital Certificate Issuance Programme, it said in a statement to the Saudi stock exchange on Monday.
Abu Dhabi Islamic Bank (ADIB), Alinma Capital, Dubai Islamic Bank (DIB), Emirates NBD Bank, Goldman Sachs International, J.P. Morgan Securities, and Standard Chartered Bank will act as joint lead managers for the potential offering.
The issuance, which will be carried out through a special purpose vehicle, will boost the bank’s capital and support general banking purposes. The amount and terms will be determined subject to market conditions.
The offering will target qualified investors inside and outside Saudi Arabia.
In July, the lender completed the issuance of sukuk worth $500 million under its trust certificate issuance programme. The price was tightened to 95 basis points plus Treasuries, with a benchmark yield of 3.987% and a coupon of 4.937%.
(Editing by Seban Scaria seban.scaria@lseg.com)
