Riyadh – Mubasher: Saudi British Bank (SABB) said that it intends to establish a sukuk programme with a total amount not exceeding $2 billion or its equivalent.

The programme aims to help the bank strengthen its capital base and support its Sharia-compliant activities and products, according to a bourse filing on Wednesday.

The issue will be through establishing an offshore special purpose vehicle for the purpose of issuing and offering senior and/or subordinated sukuk in one or more tranches or through one issue or a series of issues by way of a private placement or a public offering inside or outside the Kingdom.

In a separate statement, the bank said that it intends to offer and issue subordinated domestic sukuk with a total amount not exceeding SAR 1.5 billion.

The purpose of the issue is to help the bank strengthen its capital base, support its regulatory capital, and its Sharia-compliant activities and products, the filing added.

The bank’s board approved the issuance of the sukuk on 26 March and the programme is expected to be established in the second quarter of 2017.

The first issue under the programme will occur within twelve months of the date of establishment, after obtaining all the necessary approvals from the relevant authorities.