Alinma Bank completes USD-denominated Sustainable Additional Tier 1 Capital Certificates
ALINMA
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Riyadh – Mubasher: Alinma Bank announced the completion of issuing USD-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Program.
The Saudi lender raised a total of $500 million under this offering, according to a bourse disclosure.
The issuance was targeted at qualified investors within Saudi Arabia and internationally. This transaction marks a significant step in the bank's capital management strategy, utilizing a sustainable financing framework to bolster its regulatory capital position while engaging with global debt markets.
The finalization of the issuance follows the bank’s initial announcement on 20 May 2026 regarding the commencement of the offering.
Alinma Bank issued a total of 2,500 certificates at a par value of $200,000 each, which is also established as the minimum denomination for investor participation.
The certificates are structured with a perpetual maturity, meaning they do not have a fixed redemption date.
However, the bank has retained the right to redeem the certificates after a period of five and a half years, subject to specific conditions and regulatory requirements outlined in the offering memorandum.
This perpetual structure is a standard feature of Additional Tier 1 (AT1) capital, which serves to provide banks with a permanent layer of loss-absorbing capital.
In terms of financial returns, the certificates offer a fixed annual yield of 6.625%, which reflects the pricing determined during the book-building process and represents the periodic distribution to be paid to certificate holders.
The settlement of the issuance is expected to be finalized by 3 June 2026, at which point the certificates will be formally issued to the participating investors.
Alinma Bank has confirmed that the certificates will be listed on the International Securities Market (ISM) of the London Stock Exchange (LSE). This international listing is intended to enhance the liquidity of the instruments and provide visibility to a diverse range of global institutional investors.
The bank further noted that the certificates were offered in compliance with Regulation S (RegS) under the U.S. Securities Act of 1933, as amended. Regulation S provides a safe harbor for offers and sales of securities that occur outside the United States, facilitating the bank's access to international capital without the requirement of registration with the U.S. Securities and Exchange Commission.
Furthermore, the Sustainable designation of these AT1 certificates indicates that the issuance is aligned with the bank’s sustainability framework.
While the specific allocation of proceeds is governed by the terms of the program, such instruments are typically linked to the financing or refinancing of projects with environmental or social benefits, distinguishing them from conventional capital instruments.
Source: Mubasher Source: {{details.article.source}}