NCB completes subordinated tier 1 sukuk issue

Riyadh – Mubasher: The National Commercial Bank (NCB) announced, in a bourse filing that it successfully completed today an issuance of Sharia-compliant subordinated additional tier 1 capital sukuk, valued at SAR 2.7 billion, through a private placement offer in Saudi Arabia.

Sukuk issuances such as this are intended to strengthen the bank's capital base in accordance with the Basel III framework and sustain its growth while maintaining healthy capital adequacy levels. Additionally, the sukuk will continue to extend the maturity profile of NCB's liabilities while continuing to diversify its sources of funding, the bank added.

The sukuk are perpetual securities with no fixed redemption date. However, NCB has the right to call the Sukuk on a predefined date. All required approvals from the regulatory authorities have been obtained for the issuance. NCB Capital Company acted as sole lead manager for the issuance.