AlJazira plans AT1 issuance, Alinma to redeem sukuk

More Saudi banks are moving fast on debt this week — issuing fresh capital instruments, retiring older obligations, and making room for more to come — as the market recovers from months of war-driven inactivity and crowds into a narrow window before a summer lull.

#1- AlJazira Bank is returning to international debt markets with plans to issue USD-denominated AT1 capital certificates, according to a Tadawul disclosure. The issuance will target local and international institutional investors through a special purpose vehicle under the bank’s USD 1.5 bn global AT1 issuance program, launched in September 2025. Size and pricing terms are still to be determined, subject to regulatory approval.

REMEMBER- AlJazira raised USD 500 mn the last time it tapped international markets under the program in September. The planned issuance comes as the bank prepares to redeem its USD 500 mn tier 1 capital sukuk on 29 June, five years after the certificates were issued, and follows an SAR 1.5 bn private placement of SAR-denominated AT1 sukuk in March.

ADVISORS- Abu Dhabi Commercial Bank, AlJazira Capital, Arqaam Capital, ASB Capital, Citigroup, Emirates NBD, First Abu Dhabi Bank, Goldman Sachs, JPMorgan, and Standard Chartered are acting as joint lead managers.

#2- Alinma Bank is fully redeeming its SAR 5 bn AT1 capital sukuk on 1 July, five years after the certificates were issued, according to a Tadawul filing. All 5k units will be repaid in full, alongside outstanding periodic distributions, with regulatory approval secured.

ICYMI- Late last month, Alinma raised SAR 3 bn from an SAR-denominated AT1 sukuk and closed a separate USD 500 mn sustainable AT1 offering.

ADVISORS-Riyad Bank is the designated payment administrator, while Riyad Capital will act as the sukukholders’ agent.

Making the most of a narrowing window?

Gulf debt only began reawakening from its war-driven slumber in May, and June is tracking similarly before a summer lull and the Fed bring things to a halt. The roll cycle now playing out is banks compressing months of refinancing activity into a few weeks of open market. Spreads for investment-grade names have tightened back inside pre-war levels, presenting the right conditions to move before summer closes the window.