Riyadh – Mubasher: Bank Aljazira has officially launched the offering of its US dollar-denominated additional tier 1 (AT1), marking a significant step in the bank’s international capital-raising strategy.
The issuance, conducted through a special purpose vehicle, is part of a $1.50 billion Additional Tier 1 capital certificate issuance program and is aimed at qualified investors both within the Kingdom of Saudi Arabia and in international markets.
The commencement of the offering, which began on 17 June, follows the bank’s prior announcement on 16 June regarding its intention to issue these instruments. The offering period is expected to conclude on 18 June, although Bank AlJazira noted that the final closing date remains subject to prevailing market conditions and investor demand.
The certificates are structured as perpetual securities, meaning they have no fixed maturity date. However, the bank retains the right to redeem or call the certificates after a five-year period, subject to specific conditions detailed in the base offering memorandum dated 4 September 2025, and its subsequent supplement dated 5 June.
The final aggregate value of the issuance, the offer price, and the annual yield will be determined based on market conditions following the book-building process.
The certificates carry a par value of $200,000, which also serves as the minimum subscription amount. Investors wishing to increase their participation may do so in integral increments of $1,000 above the minimum threshold.
This issuance is specifically targeted at qualified investors who meet the regulatory criteria for such high-value financial instruments in Saudi Arabia and abroad.
Abu Dhabi Commercial Bank (ADCB), AlJazira Capital, Arqaam Capital, ASB Capital, Citigroup, Emirates NBD, First Abu Dhabi Bank (FAB), Goldman Sachs, J.P. Morgan, and Standard Chartered have been appointed as joint lead managers.
