National Commercial Bank sells SAR5bn sukuk

The National Commercial Bank (NCB) has successfully placed its 5 billion Saudi riyal (Dh4.89 billion) 5-year subordinated Tier II capital sukuk offering. Great interest from the investor community generated a 2.1x oversubscribed orderbook exceeding the initial target issuance size of 4 billion riyals, allowing the transaction to be upsized to 5 billion riyals without impacting the final pricing of the sukuk. NCB’s issuance was priced at 6-month SIBOR+110bps. HSBC Saudi Arabia acted as a lead coordinator and GIB Capital, HSBC Saudi Arabia, JP Morgan Saudi Arabia and NCB Capital acted as joint lead managers and joint bookrunners. The issuance proceeds will be used to further support NCB’s growth plans across the various business segments of the bank.