Arab National Bank SR2 billion Tier 2 sukuk

Overview:

• Arab National Bank has undertaken a SR2 billion Tier 2 sukuk (Islamic bond) issue.
• The deal was undertaken in order to raise the bank's subordinated regulatory Tier 2 capital.
• The sukuk matures in 2025 but is callable in 2020.
• Deutsche Bank, HSBC and JPMorgan acted as arrangers.
• The sukuk is a combination of a mudarabah (financial joint venture) and commodity murabaha (deferred sale) structure.

Sam Duke - Editor