Bank Aljazira Announces Completion of the Offering Period of SAR-Denominated Tier 2 Sukuk Issuance

According to a filing on the Saudi Stock Exchange (Tadawul) on the 8th of December 2021, Saudi Arabia-based Bank Aljazira has completed the offer of its SAR-denominated Tier 2 Sukuk via private placement in Saudi Arabia. The value of the offer was SAR 2 billion (USD 533.1 million).

Why it Matters?

The 2,000 Sukuk were offered at a value of SAR 1 million (USD 266,573.8) each, with a return of six-month Saudi Arabian Interbank Offered Rate (SAIBOR) +155 basis points. The maturity period of the Sukuk is 10 years, with the right of the Bank to redeem the Sukuk after 5 years from the date of issuance.

Details

The offering period of Bank Aljazira’s Tier 2 Sukuk commenced on the 21st of November 2021. Early redemp...