SABB prices $400mn capital-boosting sukuk

The offices of SABB, or Saudi British Bank, stand in Riyadh (file). SABB, an affiliate of HSBC Holdings, has completed a 1.5bn riyal ($400mn) capital-boosting sukuk issue, it said yesterday. The Islamic bond has a lifespan of seven years, with a clause allowing the bank to redeem the paper after five years, and was priced at 1.4% over the six-month Saudi interbank offered rate (Saibor), the bourse filing said. The subordinated offering will improve the Tier 2 - or supplementary - capital of Saudi Arabia’s fourth-largest listed lender by market value, although no specifics were given. SABB’s total capital ratio - combining core Tier 1 and supplementary Tier 2 capital - was one of the lowest among banks in the kingdom at the end of June, at 14.78%.