Chicago, July 8 – Baj Sukuk Tier 1 Ltd. sold a $500 million offering of dollar-denominated, perpetual sukuk, or Islamic bonds (Baa1//BBB+), guaranteed by Bank AlJazira, according to an offering document.
The notes will have an initial interest rate of 3.95%. The rate will reset on the five-year anniversary to Treasuries plus a margin of 303.8 basis points.
The Regulation S bonds will be non-callable for five years.
J.P. Morgan Securities plc, Alinma Investment Co. and Aljazira Capital are the banks managing the issue.
Proceeds will be used by the bank to enhance its tier 1 capital as well as for general corporate purposes.
The personal banking, investment banking, private banking and asset management services firm is based in Saudi Arabia.
Issuer: | Baj Sukuk Tier 1 Ltd.
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Guarantor: | Bank AlJazira
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Issue: | Tier 1 capital certificates
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Amount: | $500 million
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Maturity: | Perpetual
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Bookrunners: | J.P. Morgan Securities plc, Alinma Investment Co. and Aljazira Capital
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Trustee: | BAJ Sukuk Tier 1 Ltd.
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Coupon: | 3.95% initial rate; resets every five years at Treasuries plus 303.8 bps
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Price: | Par
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Yield: | 3.95%
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Call features: | First call date of June 29, 2026
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Trade date: | June 28
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Settlement date: | June 29
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Ratings: | Moody’s: Baa1
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| Fitch: BBB+
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Distribution: | Regulation S
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