National Commercial Bank issues SAR 1.3 bln sukuk

National Commercial Bank, Saudi Arabia’s second largest bank by assets, has issued a sharia compliant, subordinated additional Tier 1 sukuk worth SAR 1.3 billion through private placement, the lender said in a statement.

NCB Capital was appointed as the sole lead manager for the issuance, the statement said.

The sukuk issuance is in accordance with Basel III framework, which aims to strengthen NCB’s capital base, sustain its growth while maintaining healthy capital adequacy levels, as well as extend the maturity profile of the bank’s liabilities, while continuing to diversify its sources of funding.

The sukuk are perpetual securities with no fixed redemption date, yet NCB has the right to call the Sukuk on a predefined date, the lender said.

The bank has already obtained regulatory approvals for the issuance, the statement added.