Latest news with #Tier2Notes
Arabian Business
8 hours ago
- Business
- Arabian Business
Saudi National Bank's $1.25bn dollar-denominated Sukuk oversubscribed
Saudi National Bank's (SNB) issuance of US$1.25 billion in dollar-denominated Tier 2 notes, at a profit rate of 6.00 per cent, has been heavily oversubscribed. Bloomberg reported that order books exceeded $2 billion, according to a person familiar with the matter, who asked not to be identified. The bank also informed Tadawul that it will redeem a SAR 4.2 billion (US$1.12 billion) Tier 1 capital sukuk at face value on June 30, five years after the date of issuance. Bloomberg added that the bond may be priced as soon as Tuesday, with proceeds set to be used in part to strengthen SNB's capital base. The bank is issuing 6,250 Sukuks at a par value of US$200,000. Maturity period of the Sukuk is 10 years, but callable after five years. The Notes will be listed on the London Stock Exchange's International Securities Market. Saudi banks have been increasing their external debts recently, but global ratings agency S&P said in a report last month that it did not translate into any 'significant vulnerabilities'. Lower oil prices and geopolitical disturbances in the region have raised concerns, but S&P said: 'While the absolute numbers may appear significant, we expect Saudi banks' net external debt position to remain at a manageable level of about 4.1 per cent of total lending by the end of 2028.' As for the redeemed bond of SAR4.2 billion, SNB informed Tadawul: 'The Sukuk was issued on 30 June 2020 for an aggregate value of SAR4,200,000,000 and in accordance with its terms and conditions, Saudi National Bank, as issuer, intends to call the Sukuk on 30 June 2025. Regulatory approval has already been obtained.' The bank stated that the redemption amount, together with any accrued but unpaid periodic distributions, will be paid on the specified day.
Zawya
17 hours ago
- Business
- Zawya
Saudi National Bank issues $1.2bln T2 notes at 6%
Saudi National Bank has issued $1.25 billion in dollar-denominated Tier 2 notes at a profit rate of 6.00%. The Reg S 10-year non-call 5 notes are being issued under the bank's $10 billion Euro medium Term Note programme. In a separate statement on Tadawul, the lender said it will redeem 4.2 billion riyals ($320 million) Tier 1 capital sukuk at face value on June 30, five years after the date of issuance. (Writing by Brinda Darasha; editing by Seban Scaria)
