Font Size

- Aa +

Mon 22 Jun 2015 05:29 PM

Font Size

- Aa +

Saudi's largest bank raises $266m capital-boosting sukuk

National Commercial Bank says sukuk will extend maturity profile of its liabilities and diversify sources of funding

Saudi's largest bank raises $266m capital-boosting sukuk

Saudi Arabia's National Commercial Bank (NCB), the kingdom's largest bank, has raised a capital-boosting sukuk worth 1 billion riyals ($266.6 million), it said in a statement on Monday.

The privately-placed sukuk, which would boost its Tier 1 or core capital, is Basel III compliant and has a perpetual tenor, although the bank would have the right to call the sukuk on a predefined date, the company said in a bourse filing, without mentioning the call date on the sukuk.

"The sukuk will also extend the maturity profile of NCB's liabilities while continuing to diversify its sources of funding," the statement said.

JP Morgan and NCB Capital, the investment banking arm of NCB, were the deal's arrangers.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.