Bank Albilad plans USD-denominated AT1 capital sukuk

Bank Albilad headquarters

Bank Albilad intends to issue USD-denominated additional tier 1 (AT1) capital sukuk through a private placement inside and outside Saudi Arabia, under its $2 billion AT1 capital sukuk program.

According to a statement on Tadawul, the bank said the value and terms of the sukuk will be determined at a later stage based on prevailing market conditions. The issuance aims to strengthen and support the bank’s capital base to enable the achievement of its long-term strategic objectives.

The bank confirmed that the potential offering is subject to the approval of the relevant regulatory authorities and will be conducted in accordance with applicable laws and regulations. It also noted that the board of directors approved the issuance on March 4, 2025.

The bank appointed Abu Dhabi Commercial Bank PJSC, AlBilad Capital, Dubai Islamic Bank PJSC, Emirates NBD Capital Limited, HSBC Bank PLC, Mashreqbank PSC, Standard Chartered Bank, and Warba Bank KSCP as joint lead managers for the proposed offer.