National Commercial Bank (NCB) starts today, June 4, the issuance of SAR denominated additional Tier 1 sukuk through private placement, the lender said in a bourse filing today.
The issuance, which will end on Dec. 31, 2020, targets sophisticated investors defined in Article (9) of the Rules on the Offer of Securities and Continuing Obligations.
The number and value of the sukuk will be determined based on market conditions, in line with the applicable laws and regulations.
The bank mandated NCB Capital as the sole bookrunner, lead arranger and lead manager for the potential private placement offer.
With a minimum subscription of SAR 10 million and a par value of SAR 1 million, the return on the sukuk will be subject to market conditions and perpetual maturity.
The sukuk may be redeemed early due to a capital event, tax event or at the option of the bank as described in the terms and conditions, the lender added.
The announcement is not intended as an invitation or offer to purchase, acquire or subscribe to any securities and is subject to the terms and conditions of the sukuk, NCB clarified, adding that any other relevant material development will be announced in due course.
According to data compiled by Argaam, NCB announced on June 1 its plans to issue SAR denominated additional Tier 1 sukuk through private placement.
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