Aljazira Bank Completes Full Redemption of $500 Million Tier 1 Sukuk

30/06/2026 04:36 AST

Aljazira Bank has officially announced the successful redemption of its U.S.$500,000,000 Tier 1 capital certificates (Sukuk), marking a significant milestone in the institution's capital management strategy.

The redemption follows the bank's earlier disclosure on the Saudi Exchange (Tadawul) dated 22/12/1447H (June 8, 2026), where it confirmed its intention to call the Sukuk in full at face value. Today, the bank confirmed that all certificates have been redeemed at 100% of their issue price.

Key Details of the Redemption
Offer Type: International Tier 1 Sukuk denominated in U.S. dollars
Total Value Redeemed: U.S.$500,000,000
Percentage Redeemed: 100% of issued Sukuk
Number of Certificates Redeemed: 2,500 (based on minimum denomination and total size)
Issuance Date: June 29, 2021 (1442-11-19H)
Redemption Date: June 29, 2026 (1448-01-14H)
Par Value at Redemption: U.S.$200,000 per certificate
Total Issuance Value Post-Redemption: Zero

Aljazira Bank confirmed that the redemption amounts were deposited into Sukuk holders' accounts on June 29, 2026, coinciding with the official trading end date.

Strategic Significance
The full redemption underscores Aljazira Bank's commitment to prudent financial management and maintaining a strong capital base. By retiring the Tier 1 Sukuk, the bank has effectively closed this issuance cycle, reflecting confidence in its liquidity position and long-term growth outlook.

This move also highlights the bank's alignment with international best practices in capital instruments, while reinforcing investor trust in its financial stability.

Borsatalkhaleej