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The Saudi-listed Bank AlJazira, rated A3 (Stable) by Moody's / A- (Stable) by Fitch, has mandated banks for the issuance of dollar-denominated AT1 capital certificates, which will come under its tier 1 capital certificate issuance programme launched last week.
The issuance is expected through a special purpose vehicle with banks mandated including Al Jazira Capital, Citigroup Global Markets Limited, Dubai Islamic Bank, Emirates NBD Bank, JP Morgan Securities, Mashreqbank and Standard Chartered Bank as Joint Lead Managers and Bookrunners.
In January, the Saudi lender tapped the market for a Perpetual 1-billion-riyal ($270 million) AT1 sukuk offering through a private placement to boost its capital.
Earlier this week, ratings agency S&P Global said the recent surge in AT1 sukuk issuances in the kingdom can largely be attributed to the lending growth in Saudi banks that has outpaced deposits, accelerating the trend toward tapping alternative funding sources.
(Writing by Bindu Rai, editing by Seban Scaria)
