Riyadh-Mubasher: The National Commercial Bank (NCB) has issued subordinated Tier I sukuk worth SAR 1 billion, through a private placement offer in Saudi Arabia, the lender said in a bourse statement.

The issue aims to strengthen the bank's capital base in accordance with the Basel III framework and sustain its growth while maintaining healthy capital adequacy levels.

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

The sukuk are perpetual securities with no fixed redemption date, however, NCB has the right to call the sukuk on a predefined date.

J.P. Morgan Saudi Arabia and NCB Capital acted as joint lead managers.