Alawwal Bank to fully redeem its 2013 sukuk

Alawwal Bank said it intends to fully redeem its 2013 sukuk at face value, or 100 percent of issue price, by the end of 2018.

The sukuk was issued on Dec. 12, 2013 for a total value of SAR 2.5 billion (2,500 sak/certificates each with a face value of SAR 1 million). The issuance had an original maturity of ten years, due in 2023 and callable in Dec. 2018.

Regulatory approval has already been obtained for the redemption, the bank said in a bourse statement.

The redemption amount along with the periodic distribution amount (profit for the current period ending Dec. 12, 2018) will be transferred by Alawwal Bank to the sukuk holders accounts on Dec. 12, 2018 based on their respective holdings as of Dec. 2, 2018 (start of the sukuk trading suspension period), the statement added.