ANB completes $750 mln sukuk offer

Arab National Bank (ANB) completed the issuance of the second tranche of US dollar-denominated Tier 2 sukuk to eligible investors in Saudi Arabia and internationally, with a value of $750 million, the bank said in a bourse statement today, Oct. 22.

The total number of sukuk stood at 3,750, based on the minimum denomination and the total issue size. The par value amounted to $200,000.

The return of 3.326% per annum fixed rate is payable semi-annually in arrears on each periodic distribution date, from the issue date to Oct. 28, 2025 after which the return rate will be reset.

The maturity period of the sukuk is Oct. 28, 2030, callable on Oct. 28, 2025, the statement said, adding that the sukuk may be redeemed early due to a capital disqualification event, tax reasons, or after five year since the issue date; subject to the terms and conditions of the sukuk.

The sukuk will be listed on the Regulated Market of the London Stock Exchange, and may be sold in reliance on Regulation S under the US Securities Act of 1933, as amended.

According to the data available with Argaam, ANB announced on Wednesday, Oct. 21, the start of the issuance of the second tranche of US dollar-denominated Tier 2 sukuk, subject to market conditions.