Saudi Hollandi Bank prices $373m sukuk
Riyadh, November 27, 2012
Saudi Hollandi Bank, the kingdom's eighth-largest bank, has completed a SR1.4 billion ($373.3 million) Islamic bond issue, the bank said in a statement.
The subordinated sukuk, which will boost the bank's Tier two capital ratio, has a seven-year maturity but can be redeemed by the issuer after the end of the fifth year, the statement added.
No detail was provided on what the bank's Tier two ratio was before and after the offering. Tier two is a measure of the bank's supplementary capital reserves.
The sukuk priced at 1.15 per cent over the six-month Saudi interbank offered rate, it added. Shareholders approved the issue of the sukuk in early October.-Reuters