Local sukuk sale: NCB picks 4 banks



REUTERS

Published — Friday 31 January 2014

Last update 30 January 2014 11:54 pm

| نسخة PDF Print News | A A

JEDDAH: Saudi Arabia’s National Commercial Bank has chosen four banks to arrange a local currency sukuk, joining a trend of lenders in the kingdom using Islamic bond markets to top up their capital reserves.
NCB had mandated its own investment banking arm, NCB Capital, as well as that of Gulf International Bank and the Saudi Arabian units of HSBC and JP Morgan to arrange the transaction, those arranging banks announced.
Meetings with Saudi investors will take place next week, with pricing of the Islamic bond expected toward the end of February, a source with knowledge of the matter said.
The sukuk will enhance the bank’s Tier 2 — or supplementary — capital and will have a 10-year lifespan with an option of the bank redeeming the instrument after five years.
The size of the issue has yet to be determined.
NCB is the latest Saudi bank to announce plans for a capital-boosting sukuk. Many banks have been selling such instruments to strengthen their reserves after a period of sustained lending growth.
Riyad Bank completed a SR4 billion ($1.1 billion) issue in November, and Saudi Hollandi Bank priced a 2.5 billion riyals offering in December.
NCB’s chairman was quoted in October as saying the bank was planning to issue a capital-boosting sukuk worth up to SR4 billion.
The bank’s capital adequacy ratio, an indicator of financial health, would drop to around 15 percent after the distribution of dividends for 2013, Mansour Al-Maiman said at the time.
Saudi banks are generally well capitalized compared to their Western peers.

What's happening around Saudi Arabia

JEDDAH: A total of 172,000 pilgrims have arrived via 861 flights from around the world at King Abdulaziz International Airport so far, said Turki Al-Theeb, the airport’s director of media and public relations.He said the number of Haj flights are exp...
RIYADH: Saudis from all walks of life are hopeful that the visit of Custodian of the Two Holy Mosques King Salman to the United States this week will strengthen relations between the two countries and ensure a peaceful and stable Middle East.Shoura C...
JEDDAH: Security forces killed a terrorist who tried to attack a security facility in Abqaiq on Friday, the Interior Ministry said.Sgt. Ali Al-Habeeb, 47, was killed during the confrontation with the attacker, identified as Nawaf Manahi Shabib Al-Ota...
ANKARA: Labor Minister Mufrej Al-Haqabani has said that unemployment among Saudis is relatively high, pointing to the negative impact of retreating oil prices on the economy and labor market. He confirmed that the Kingdom was continuing with the impl...
JEDDAH: The country’s newly elected municipal councils should have a say in selecting mayors and secretaries general of cities, participants at a Municipal Councils Forum suggested on Thursday.They proposed that the councils should compile a list of...
DAMMAM: Many Saudis have complained that while the Kingdom has attractive local tourist spots, several charge high prices, offer poor services and lack proper hygiene.They said that Taif, Abha, Baha, Jeddah and the Eastern Province have popular resor...

Stay Connected

Facebook