NCB issues SAR 2 bln sukuk through private placement

National Commercial Bank (NCB) has completed its subordinated Tier I capital sukuk, which raised a total of SAR 2 billion through a private placement offer.

Saudi Arabia’s largest bank said in a statement to Tadawul that the issuance will help it strengthen its capital base in accordance with the Basel III framework. The issuance is also expected to extend the maturity profile of NCB's liabilities and diversify its sources of funding.

NCB added that that the sukuk will have no fixed redemption date; however they can be repaid on a predefined date.

Last month, the bank revealed in a bourse statement that it had sold SAR 1 billion through sukuk.

Several Saudi lenders have recently issued riyal-denominated sukuk to tap into the liquid local investor pool to get cheaper, long-term finance to boost their capital.