Saudi Arabia’s Bank AlJazira will issue Tier I capital certificates for an amount not more than $500 million through private placement, the Riyadh-listed bank said in a bourse filing Monday.
The debt instruments will be issued by BAJ Sukuk Tier 1 Limited, a special purpose vehicle (SPV) incorporated in the Cayman Islands. The certificates will be redeemable after five years from the date of issuance.
The exact value and terms of the issuance will be determined later, subject to the market conditions, the lender said.
Saudi banks have turned to the local debt market to expand their long-term funding sources.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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