NCB completes $1.25 bln additional Tier 1 sukuk issue

National Commercial Bank (NCB) completed issuing additional Tier 1 sukuk at a value of $1.25 billion (SAR 4.69 billion), according to a bourse statement.

The sukuk settlement will be implemented today, Jan. 26, 2021, the statement added.

The bank issued 6.250 bonds, based on the minimum denomination and total issue size, at $200,000 each. The sukuk were sold at a return of 3.50% per annum from the issue date to Jan. 26, 2027, when the rate of the return will be reset and then every six years.

The sukuk may be redeemed early due to a capital event, tax event or at the option of NCB.

NCB mandated Citigroup Global Markets Limited, Emirates NBD Capital, Goldman Sachs International, J.P. Morgan Securities plc, MUFG Securities EMEA plc, NCB Capital Company and Standard Chartered Bank as joint lead managers and bookrunners for the offer.

Argaam reported earlier that NCB started issuance of NCB Tier 1 Sukuk Ltd., an exempted company with limited liability in the Cayman Islands, from Jan. 20 to 26, 2021.