National Commercial Bank (NCB) plans to issue SAR denominated additional Tier 1 sukuk through private placement, the lender said in a bourse filing on Monday.
The number and value of the sukuk will be determined based on market conditions, and in line with the applicable laws and regulations. NCB did not say how big the issue will be.
The Shariah-compliant bank mandated NCB Capital as the sole bookrunner, lead arranger and lead manager for the potential private placement offer. Funds raised from the potential offer will be used to strengthen the bank’s capital base in accordance with the Basel III framework, it said.
Any other relevant material development will be announced in due course. In a separate statement, NCB said it will fully redeem its SAR 1 billion, Tier 1 sukuk, on June 22, 2020, at face value.
The lender decided to redeem the sukuk on the first contractual call date (June 22), indicating the redemption amount along with the periodic distribution amount (profit for the current period ending on June 22, 2020) will be transferred to sukuk holder accounts on June 7, 2020.
The required regulatory approval has been obtained for redemption, the statement noted. NCB is Saudi Arabia’s largest bank by assets.
Source Salaam Gateway