Riyadh – Mubasher: Bank Aljazira has announced the successful completion of its offering of US dollar-denominated Additional Tier 1 (AT1) capital certificates, raising a total of $500 million.
The issuance was conducted under the bank’s $1.50 billion AT1 capital certificate issuance program and was directed toward qualified investors both within the Kingdom of Saudi Arabia and in international markets, according to a bourse filing.
The finalization of this offering follows the bank’s initial announcement on 17 June 2026 regarding the commencement of the private placement.
The bank issued a total of 2,500 certificates that were calculated based on the minimum denomination and the total size of the issuance.
Each certificate carries a face value of $200,000 and the certificates were priced with an annual yield of 6.50%.
This issuance is classified as perpetual, meaning it has no fixed maturity date; however, the bank maintains the right to redeem the certificates after a period of five years, subject to specific conditions.
These redemption terms are outlined in the primary offering memorandum dated 4 September 2025, which was further updated by a supplement on 5 June 2026.
Settlement for the issuance is scheduled to take place on 24 June 2026. The bank confirmed that the certificates will be listed on the International Securities Market of the London Stock Exchange.
The sale of these securities was conducted in accordance with Regulation S under the United States Securities Act of 1933, as amended, which governs offerings made outside the United States to non-U.S. persons.
By tapping into international debt markets, Bank Aljazira has diversified its funding sources and engaged a broad base of institutional and qualified investors.
The issuance of AT1 certificates is a standard financial strategy for banking institutions to strengthen their capital structure. These instruments are designed to qualify as Tier 1 capital under Basel III regulatory frameworks, providing a buffer that enhances the financial institution's loss-absorption capacity while maintaining a robust capital adequacy ratio.
As the settlement date approaches, the bank will finalize the administrative and regulatory procedures required for the formal listing on the London Stock Exchange.
This international listing provides the certificates with a secondary market platform, offering liquidity to the qualified investors who participated in the offering.
