NCB closes Tier I sukuk of 2b Saudi riyals

Dubai: The National Commercial Bank (NCB) said on Wednesday it successfully issued subordinated Additional Tier I capital Sukuk of 2 billion Saudi riyals (Dh1.95 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 diversifying its sources of funding, the bank said in an emailed statement.

The Sukuk are perpetual securities with no fixed redemption date, it added.