SABB to update international sukuk program, plans local sukuk

Saudi British Bank (SABB) will update and amend its previously established international sukuk program, and set up a local sukuk program after obtaining the approval from board of directors on June 8, it said in a bourse statement.

The purpose of the sukuk programs will be to issue and offer senior and/or subordinated sukuk, including the issuance of Tier II capital eligible sukuk in one or more tranches or through one or a series of issuances by way of private placement or public offering inside or outside Saudi Arabia.

The sukuk will be denominated in US Dollars or any other currencies for the international program for a total value not exceeding $5 billion or Saudi Riyals for local program for a total amount of SAR 5 billion or their equivalent at any time.

The value and terms of the issuances will be determined according to the market conditions provided each value does not exceed the overall size of the relevant sukuk program.

The issuance will aim to fulfill the bank’s financial and strategic needs, the statement added.

The sukuk offering will be subject to the approval of the relevant regulatory authorities, and will be made in accordance with applicable laws and regulations.

The bank will announce any other relevant material developments to its shareholders in due course.