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

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