Riyadh – Mubasher: Saudi Investment Bank (SAIB) on Monday announced the closure of its transaction of SAR 215 million sharia-compliant subordinated tier I sukuk through a private placement offer in Saudi Arabia.

The sukuk will improve SAIB’s capital base and capital adequacy ratios, along with diversifying the bank’s funding sources and extending its maturity profile, according to a statement to the Saudi Stock Exchange (Tadawul).

“The sukuk are perpetual securities with no fixed redemption date. However, the bank has the right to call the sukuk on predefined dates,” the statement added.

SAIB has received all the required regulatory approvals for the issuance, SAIB noted, adding that Alistithmar for Financial Securities and Brokerage Company was the sole lead manager for this issuance.