Riyadh-Mubasher: The Saudi British Bank (SABB) said on Thursday it has successfully completed the issuance of SAR 1.5 billion subordinated Tier II sukuk through a private placement offer in Saudi Arabia.

The move aims to support the bank's capital base, in light of the Basel III framework, and to boost its growth.

The sukuk will also extend the maturity profile of SABB's liabilities, while continuing to diversify its sources of funding.

The issuance will have a 10-year tenor, with the bank having the right to call the sukuk at the end of the fifth year. The sukuk also carries a semi-annual profit of six-month SIBOR + 1.30%.