SAIB raises Tier 1 sukuk size to SAR 5 bln, announces plan to start issuance

Saudi Investment Bank headquarters

Saudi Investment Bank (SAIB) increased the size of Tier 1 Sukuk program to SAR 5 billion from SAR 2 billion, according to the program’s documents.

The bank intends to issue SAR denominated Tier 1 sukuk under the programme by way of private placement in Saudi Arabia.

The exact value and terms of the issuance will be determined at a later stage subject to the market conditions, SAIB said in a statement to Tadawul.

The offer aims to enhance the Tier 1 capital and fulfil the bank’s financial and strategic needs, it added.

The bank mandated Alistithmar Capital as lead manager and bookrunner for the potential offer.

The offer will be subject to the approval of the relevant regulatory authorities, and it will be made in compliance with applicable laws and regulations, the statement noted, adding that any relevant material developments will be announced in due course.

In March, SAIB announced its plans to issue SAR-denominated Tier 1 sukuk with a total amount not exceeding SAR 2 billion through private placement, Argaam earlier reported.