Bank Al Jazira announced the start of issuing Tier 1 capital bonds with a total amount not exceeding 500 million US dollars.
The bank stated, in a statement to the “Tadawul” financial market website, today, Sunday, that the sukuk will be offered in a private placement, bearing in mind that the minimum subscription amount is 200 thousand dollars, and the sukuks are redeemable after 5 years from the date of issuance.
The bank set the start date of the offering on June 24, and the offering will end on June 29.
On June 20, the bank announced the intention of “Bank Al-Jazira Sukuk First Tranche Limited”, an exempt company established in the Cayman Islands with limited liability.
It is noteworthy that the Bank has appointed Alinma Investment Company, Al Jazira Capital and JPMorgan Securities plc as joint lead managers and bookrunners for the prospective offering.
The bank aims from the offering to enhance the capital from the first tranche and for the general purposes of the bank.
Recently, the financial statements of Bank Al-Jazira showed an increase in profits by 77.1% during the first quarter ending on March 31, 2021.
The bank achieved a net profit of 363.6 million riyals during the first quarter of 2021, compared to profits of 216.6 million riyals in the first quarter of 2020.
The bank attributed the increase in profits during the first quarter of 2021 to the increase in operating income by 23%. This is mainly due to the increase in net financing and investment income, net profits from selling financial assets measured at amortized cost, net income from banking services fees, and net profits from financial instruments measured at fair value through the income statement.