Saudi-based Islamic lender Alinma Bank has given initial price guidance of around 7% for its additional Tier 1 sukuk non-callable for 5.5 years, a lead manager document showed on Wednesday.

The Islamic lender plans to sell benchmark-sized U.S. dollar-denominated perpetual Additional Tier 1 Capital Certificates through a special purpose vehicle, the document added.

Proceeds from the debt sale will be utilized for improvement of Tier 1 capital and general banking purposes, the bank said in a bourse filing.

(Reporting by Mohammad Edrees; Editing by Kim Coghill)