National Commercial Bank Completes Issuance of USD 1.25 Billion Additional Tier 1 Sukuk

Saudi lender National Commercial Bank (NCB, also known as AlAhli Bank) has completed the issuance of additional Tier 1 Sukuk worth USD 1.25 billion (SAR 4.69 billion), with the settlement implemented on the 26th of January 2021, according to a recent Tadawul filing.

NCB issued a total of 6,250 bonds, based on the minimum denomination and total issue size, at USD 200,000 par value, with a perpetual maturity. The Sukuk were sold at a return of 3.5% per annum from the date of issue up to (but excluding) the 26th of January 2027. According to the bourse filing, the rate of the return will be reset on the 26th of January 2027, and then after every six years.

According to the filing, the Sukuk can be redeemed early due to a capital event, tax event, or at the option of NCB....