JEDDAH – The National Commercial Bank (NCB) has successfully placed its SR 5.0 billion10 non-call 5 year subordinated Tier II capital sukuk offering, marking the largest issuance by a financial institution in Saudi Arabia and the largest ever subordinated debt instrument issued by a financial institution in the MENA region. The transaction represents NCB's debut local Saudi riyal issuance and its inaugural Tier II capital offering. NCB's Chairman Mansour Al Maiman said: “We are extremely pleased with the success of this issuance and would like to thank the investor community for their trust and confidence in the NCB franchise.” Overwhelming interest from the investor community generated a 2.1x oversubscribed orderbook exceeding the initial target issuance size of SR4.0 billion, allowing the transaction to be upsized to SR 5.0 billion without impacting the final pricing of the sukuk. NCB's issuance was priced at 6-month SIBOR+110bps. Proceeds will be used to further support NCB's growth plans. – SG
