Finance

Saudi’s Bank AlJazira prices $500mln, non-call 5.5-year sukuk

The final orderbook is in excess of $1.65bln, excluding JLM interest.

Saudi Arabia’s Bank AlJazira, rated A3 (stable) / A-(stable) by Moody’s and Fitch, has priced its dollar-denominated, benchmark perpetual non-call 5.5-year AT1 sukuk on par, with a profit rate of 6.5% and a reset margin of +284.7 bps.

The price was marginally tightened from the initial price thoughts in the 6.875% area.

The final orderbook for the Reg S, Category 2 sukuk was in excess of $1.65 billion, excluding JLM interest.

The Mudaraba structure will be listed on London Stock Exchange’s International Securities Market and will come under the lender’s $1.5 billion Additional Tier 1 Trust Certificate Programme.

Banks mandated included Al Jazira Capital, Citigroup Global Markets Limited, Dubai Islamic Bank, Emirates NBD Bank, JP Morgan Securities, Mashreqbank and Standard Chartered Bank as Joint Lead Managers and Bookrunners.

In January, Bank AlJazira tapped the markets for a Perpetual 1-billion-riyal ($270 million) AT1 sukuk offering through a private placement to boost its capital.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Crypto carry: Market segmentation and price distortions in digital asset markets

The rapid growth of cryptocurrency markets has created new challenges for financial regulators and policymakers.…

6 hours ago

Macroeconomic impacts of defence spending

Worsened security in Europe has prompted EU member states to increase their defence capacity. This…

6 hours ago

Tariffs and technological hegemony

The Trump administration’s sweeping tariff measures are intended to increase the competitiveness of US firms…

6 hours ago

Harnessing the wisdom of the crowds for OECD recession predictions

A key challenge in predicting recessions is distinguishing which factors matter at different forecasting horizons…

6 hours ago

Fact-checking reduces the circulation of misinformation – we should not get rid of it

Fact-checking has emerged as one of the most prominent policy tools to combat the spread…

6 hours ago

Stifling or scaling: Acquisitions and their effect on start-up innovation

Over the past two decades, start-ups have increasingly turned to acquisition as their preferred exit…

6 hours ago