SABB completes SAR 1.5 bln sukuk issuance

The Saudi British Bank (SABB) said in a bourse statement on Thursday that it has successfully completed a SAR 1.5 billion subordinated Tier II sukuk transaction through a private placement offer in Saudi Arabia.

The sukuk, which has a 10-year tenure, is expected to finance the bank’s expansion plans and support its diversification strategy, in line with Basel III requirements.

The bank will have the right to redeem at the end of the fifth year, while the sukuk carries a semiannual profit of six months SIBOR + 1.30 percent. All required approvals from regulatory authorities have been obtained for the issuance.

SABB is currently 40 percent-owned by HSBC.