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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)
