Latest news with #AT1
Zawya
2 days ago
- Business
- Zawya
Saudi Awwal Bank to issue SAR-denominated AT1 sukuk
Saudi Arabia's Awwal Bank. rated A1 by Moody's (Stable) and A- by Fitch (Stable), plans to issue a riyal-denominated Additional Tier 1 sukuk via private placement. The bank has mandated HSBC Saudi Arabia as sole arranger and dealer for the transaction. HSBC Holdings owns a 31% stake in the Saudi lender. In May, the bank issued a $650 million 5.5-year green AT1 sukuk at the 6. 5%. (Writing by Brinda Darasha; editing by Daniel Luiz)
Khaleej Times
10-06-2025
- Business
- Khaleej Times
Sharjah Islamic Bank lists $500m sukuk on Nasdaq Dubai
Sharjah Islamic Bank on Tuesday listed a $500 million Additional Tier 1 (AT1) sukuk on Nasdaq Dubai. This latest transaction brings the Bank's total outstanding on Nasdaq Dubai to $2.5 billion across five listings. With this listing, the total value of Sukuk listed on Nasdaq Dubai has reached $95.7 billion, underlining its status as one of the world's largest venues for Islamic fixed-income securities. Nasdaq Dubai's broader debt capital market has now surpassed $136 billion across 160 listings, reflecting growing international confidence in Dubai as a gateway for capital flows between the Middle East and the world. The perpetual, non-call six-year AT1 Capital Certificates were issued by SIB Tier 1 Sukuk IIND Ltd and are compliant with Basel III regulations. The issuance attracted strong interest from both regional and international investors, providing Sharjah Islamic Bank with additional capital to fuel its long-term growth plans. To mark the occasion, Ahmed Saad, DCEO of Sharjah Islamic Bank rang the market opening bell at Nasdaq Dubai in the presence of Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Saad said: 'The successful listing of our $500 million perpetual Additional Tier 1 Sukuk on Nasdaq Dubai marks a significant milestone in Sharjah Islamic Bank's strategic growth journey. This issuance reflects our strong fundamentals, robust investor confidence, and commitment to maintaining a solid capital base in line with Basel III requirements. We are proud to deepen our relationship with Nasdaq Dubai, a platform that continues to champion innovation and global best practices in Islamic finance. As we expand our presence in international markets, we remain committed to contributing to the sustainable development of the UAE's financial sector and the broader Islamic capital market ecosystem.' Ali said: 'This listing is part of a broader shift as regional institutions like Sharjah Islamic Bank lead the deepening of local debt markets. As demand for diversified, Shariah-compliant instruments continues to grow, Nasdaq Dubai is proud to serve as a trusted platform for innovation in Islamic finance. The momentum we are seeing in Sukuk issuances signals a maturing financial ecosystem where local ambition meets global capital flows. SIB's continued engagement underscores the strategic role financial institutions play in building resilient, forward-looking capital markets across the UAE and beyond.'
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)
