SABB plans $2 bln sukuk program

29/03/2017 Argaam

The Saudi British Bank (SABB) approved on Sunday a new sukuk program under which it will set up an offshore special purpose vehicle (SPV) to handle the offering of senior and/or subordinated sukuk.

 

The sukuk will be offered in one or more tranches or issuances, through a private placement or a public offering inside or outside the kingdom, SABB said in a statement to Tadawul on Wednesday.

 

The issuances will be denominated in dollars or another currency at a maximum value of $2 billion (SAR 7.5 billion).

 

The program is expected to be set up in Q2 2017, with first issuance likely within one year from the establishment of the SPV, pending regulatory approvals.

 

In a separate statement, SABB said it is also planning to issue SAR 1.5 billion worth of subordinated domestic sukuk through a private placement in Saudi Arabia.

 

Proceeds from the sale will be used to strengthen the bank’s capital base and support its Sharia-compliant products.

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