Latest news with #AT1
Zawya
23-05-2025
- Business
- Zawya
Alinma continues Saudi AT1 splurge: IFR
Alinma Bank became the fourth Saudi Arabian bank in less than a month to issue in the US dollar AT1 market, with its deal coming in line with where the two most recent ones priced. Alinma, which is a publicly listed Islamic bank, though wealth fund Public Investment Fund also owns a 10% share, showed liquidity hasn't dried up despite the supply glut in recent weeks. Its deal on Tuesday came days after Saudi Awwal Bank and Bank Albilad both issued, with Banque Saudi Fransi kicking off this round of supply in late April. With the exception of BSF, the other three were issued in sukuk format. All have come tight, even though secondary market performance hasn't held up, with the deals preceding Alinma trading below par. Against that context, a lead banker said the outcome of the Alinma trade "was strong". As with Awwal and Albilad, Alinma was issuing a perpetual non-call 5.5-year AT1 note. There were subtle differences between the three. Awwal and Albilad were making their debuts; Alinma was returning with its second trade. Alinma and Awwal both had ESG labels – sustainable in the case of Alinma and green for Awwal. Albilad didn't have an ESG label. Also, Awwal's structure was not compliant with AAOIFI standards, so its buyer base was limited as UAE banks were not allowed to participate. In contrast, both Alinma and Albilad were AAOIFI-compliant. Alinma opened books on its deal at the 7% area. But with final orders at over US$1.75bn, the bank was able to print US$500m at 6.5%. The yield was in line with where Awwal and Albilad landed, though size-wise Alinma's deal was smaller, with the other two raising US$650m each. The lead said the bank "didn't push on size" given the tight pricing. He also said the AAOIFI compliance was "less relevant" for demand because of the amount of recent supply. Faisal Ali, senior portfolio manager at Azimut, said the price came in line "with our fair value target". "We were hoping to see some concession on Alinma given elevated supply from the Saudi AT1 space. However, given the demand for high-yield sukuk, the deal got done without the bank leaving anything on the table," he said. He said the bank's credit profile is supported by its stable asset quality combined with high reserves that cover non-performing loans, rising profitability and solid funding and liquidity profile. That credit strength is balanced by the bank's concentrated loan book as well as its funding profile. "The bank has experienced high growth over the last few years, which translates into an unseasoned loan book. Asset quality is likely to weaken going forward, thereby putting some pressure on reserves and capital buffers," he said. Alinma is rated A2 by Moody's and A– by Fitch. Abu Dhabi Islamic Bank, Alinma Capital, Emirates NBD Capital, JP Morgan, Goldman Sachs and Standard Chartered were the lead managers.
Zawya
16-05-2025
- Business
- Zawya
Saudi Arabia's Bank Albilad launches $650mln USD AT1 sukuk
Saudi Arabian lender Bank Albilad launched its $650 million debut USD-denominated 5.5-year AT1 sukuk, with the pricing tightened to 6.5% from IPTs that were in the 6.75% area. The perpetual non-call mudaraba offering had a final book size greater than $2.5 billion, excluding JLM interest. The sukuk is being issued under the lender's $2 billion AT1 capital sukuk programme. Albilad Capital and HSBC Bank plc are global coordinators and joint lead managers while Emirates NBD Capital and Goldman Sachs International are joint lead managers. The net proceeds will be used by the bank to improve its Tier 1 capital and for general banking purposes. The offering will be listed on London Stock Exchange's International Securities Market. Bank Albilad is rated A2 by Moody's (Stable) and A- by Fitch (Stable). (Writing by Bindu Rai, editing by Daniel Luiz)
Zawya
15-05-2025
- Business
- Zawya
IPTs out for Saudi Bank Albilad's debut AT1 sukuk
Saudi Arabia's Bank Albilad has launched its debut USD-denominated AT1 sukuk--expected to be sized at $500 million--with IPTs in the 6.750% area. The perpetual non-call 5.5 years (subject to early redemption) mudaraba sukuk is being issued under the lender's $2 billion AT1 capital sukuk programme. Albilad Capital and HSBC Bank plc are global coordinators and joint lead managers while Emirates NBD Capital and Goldman Sachs International are joint lead managers. Albilad Bank is rated A2 (Stable) by Moody's / A- (stable) by Fitch. The sukuk will be listed on London Stock Exchange's International Securities Market. (Writing by Brinda Darasha; editing by Daniel Luiz)
Yahoo
26-04-2025
- Business
- Yahoo
Should You Think About Buying Aroundtown SA (ETR:AT1) Now?
Aroundtown SA (ETR:AT1), is not the largest company out there, but it saw a significant share price rise of 21% in the past couple of months on the XTRA. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's take a look at Aroundtown's outlook and value based on the most recent financial data to see if the opportunity still exists. We've discovered 2 warning signs about Aroundtown. View them for free. Aroundtown is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 55.28x is currently well-above the industry average of 15.86x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Aroundtown's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Aroundtown Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Aroundtown's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? AT1's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe AT1 should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on AT1 for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for AT1, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing Aroundtown at this point in time. When we did our research, we found 2 warning signs for Aroundtown (1 makes us a bit uncomfortable!) that we believe deserve your full attention. If you are no longer interested in Aroundtown, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
