Angle - News: Quick Snapshot: Saudi Arabia's Alinma Bank begins issuing additional Tier 1 capital sukuk denominated in riyals

Shaimaa Hefzy

Alinma Bank, listed on the Saudi Stock Exchange, has begun issuing additional Tier 1 capital bonds denominated in Saudi Riyals in a private placement. The value and return on these bonds will be determined according to market conditions, according to a statement from the exchange on Sunday.

The planned issuance is part of a SAR 5 billion (USD 1.3 billion) program. Last December, the bank's board of directors authorized the managing director and CEO to establish the sukuk program and issue any subsequent series of sukuk from time to time.

Alinma Bank was established in 2006 and listed on the Saudi Stock Exchange in 2008. The Saudi Public Investment Fund owns 10% of it, according to the bank’s official website and Tadawul.

According to the statement, the offering period will extend between May 3-17, and the instruments will be perpetual and redeemable in certain cases according to the offering prospectus.

Alinma Financial Company and HSBC Saudi Arabia have been appointed as managers for the offering.

(Prepared by: Shaimaa Hefzy, for contact: zawya.arabic@lseg.com)

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