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Banks (Finance)

Alinma Bank Announces Plans to Issue U.S. Dollar-Denominated Sustainable Additional Tier 1 Capital Certificates

Strategic Insights

— 1 min read

Alinma Bank, a leading financial institution in Saudi Arabia, has announced its intention to issue U.S. dollar-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Programme. This move follows a Board of Directors' resolution on May 5, 2025, authorizing the bank's chief executive officer to execute the issuance. The certificates will be offered to eligible investors both within Saudi Arabia and internationally through a special purpose vehicle, with a consortium of financial institutions acting as Joint Lead Managers. The offering will be subject to market conditions and necessary approvals from regulatory authorities.

Key Takeaways:

  • Alinma Bank has announced plans to issue U.S. dollar-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Programme.
  • The bank has appointed a consortium of financial institutions, including Abu Dhabi Islamic Bank PJSC, Alinma Capital Company, Dubai Islamic Bank PJSC, Emirates NBD Bank P.J.S.C., Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank, as Joint Lead Managers.
  • The offer depends on prevailing market conditions and will be subject to necessary approvals from relevant regulatory authorities.
  • The primary objectives of this issuance are to enhance Tier 1 capital and support general banking purposes.
  • The bank assures its shareholders that any further material developments will be communicated in accordance with relevant regulations.
  • The Capital Market Authority and Saudi Exchange disclaim any liability for the disclosure's contents, with the issuer accepting full responsibility for its accuracy.
  • Alinma Bank's chief executive officer will execute the issuance following the Board of Directors' resolution on May 5, 2025.

Statistics:

  • Date of Board of Directors' resolution: May 5, 2025
  • Type of certificates: U.S. dollar-denominated Sustainable Additional Tier 1 Capital Certificates
  • Issuance vehicle: Special purpose vehicle
  • Lead managers: Consortium of financial institutions including Abu Dhabi Islamic Bank PJSC, Alinma Capital Company, Dubai Islamic Bank PJSC, Emirates NBD Bank P.J.S.C., Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank

Sources:

  • Saudi Exchange
  • Alinma Bank

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