Saudi-listed Bank Albilad has mandated banks to issue Additional Tier 1 (AT1) sukuk to boost its capital base and meet long-term strategic goals.

The dollar-denominated offering, which will be via a private placement, is part of the lender’s $2 billion Islamic bonds programme. It will target investors in Saudi Arabia and overseas.

The exact amount and terms of the latest issuance will be determined later based on market demand, the bank said.

The bank has mandated the following as joint lead managers of the sukuk: Abu Dhabi Commercial Bank, Albilad Capital, Dubai Islamic Bank, Emirates NBD Capital, HSBC, Mashreqbank, Standard Chartered Bank and Warba Bank.

(Writing by Cleofe Maceda; editing by Brinda Darasha)