Saudi Arabia's National Commercial Bank (NCB) became the latest lender in the kingdom to announce the sale of a capital-boosting Islamic bond, raising SR1 billion ($267 million) through a sukuk which will enhance its core capital.

The kingdom's largest bank said on Monday the privately-placed sukuk, which would boost its Tier 1 capital, was Basel III-compliant and had a perpetual tenor, although the bank would have the right to call the sukuk on a predefined date.

However, it did not disclose the call date in the bourse filing announcing the transaction.

NCB joins a string of Saudi Arabian banks that have sought to replenish their capital reserves in the last couple of years, by issuing capital-boosting bonds and bonus shares, after a period of strong lending growth.

Sources told Reuters earlier on Monday that Riyad Bank , Saudi Arabia's fourth-largest lender by assets, had completed a sukuk worth 4 billion riyals which would enhance its Tier 2, or supplementary, capital.

Saudi British Bank, the kingdom's sixth-largest lender, privately placed a 1.5 billion riyal subordinated Tier 2 sukuk last month.

Capital reserves are high in Saudi Arabia, compared with Western standards, due to the kingdom's conservative regulatory standards.

At the end of March, NCB had a total capital adequacy ratio, which includes both Tier 1 and Tier 2 capital, of 17.1 percent, down from 18.2 percent at the same point of 2014, according to its financial statements.

JP Morgan and NCB Capital, the investment banking arm of NCB, were the deal's arrangers.

"The sukuk will also extend the maturity profile of NCB's liabilities while continuing to diversify its sources of funding," the statement added.-Reuters