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The Saudi Investment Bank issues SAR 2 billion subordinated Sukuk

June 8, 2014

The Saudi Investment Bank successfully concluded on 5 June 2014 the issuance of a SAR 2 billion Sukuk through a private placement inside the Kingdom of Saudi Arabia.

This Shari'ah compliant Sukuk will support the bank's capital base in accordance with Basel III requirements in order to assist in the Bank further growth. It will also improve the maturity profile in addition to diversifying funding sources. The issuance has a tenor of 10 years with the bank having the right to call the Sukuk at the end of the fifth year. The Sukuk carries a half yearly profit of six months SIBOR + 1.45 per cent. All required approvals from the regulatory authorities have been obtained for the issuance.

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Source: CPI Financial

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