Arab Bank launches a riyal-denominated sukuk offering

Arab National Bank announced the launch of an additional Tier 1 capital sukuk offering worth 11,250,000,000 riyals denominated in Saudi riyals under its program for additional Tier 1 capital sukuk

The bank explained in a statement on “Tadawul” that the final offering value and the terms of the sukuk offering will be determined at a later stage based on market conditions at that time. The offering date will be during the period from January 16 to January 27.

The bank confirmed that the target group is the founding and qualified clients according to the rules for offering securities and continuing obligations issued by the Capital Market Authority. Noting that HSBC Saudi Arabia and Al-Arabi Financial Company were appointed as the offering managers with regard to the offering and issuance of the sukuk.

The bank said that the minimum subscription is one million riyals, and the return will be determined at a later stage according to market conditions at that time.

He added that the sukuk are perpetual and subject to early redemption on the call date or as specified in the basic offering document and the applicable final terms related to the sukuk.