Riyadh – Mubasher: Bank Aljazira has officially announced the full redemption of its Tier 1 capital certificates, totaling $500 million.
The transaction, which saw the bank repurchase 100% of the outstanding international sukuk, was finalized on 29 June 2026. This move follows the bank’s previous disclosure regarding its intent to exercise the redemption option at the full nominal value, marking the conclusion of this specific debt instrument’s lifecycle.
The redemption involved 2,500 individual certificates, calculated based on the minimum denomination and the total aggregate volume of the issuance.
Each certificate carried a par value of $200,000 at the time of redemption. By redeeming the entirety of the issuance at 100% of the original issue price, Bank Aljazira has effectively reduced the outstanding balance of this specific Tier 1 capital instrument to zero.
These Sharia-compliant certificates were originally issued on 29 June 2021. The five-year offering was part of the bank’s broader strategy to manage its capital structure and bolster its Tier 1 capital base in accordance with regulatory requirements.
In its regulatory filing with the Saudi Exchange (Tadawul), the bank confirmed that the trading of these certificates has officially ceased.
Furthermore, the bank noted that the settlement process was completed on the same day, with funds being deposited into the respective accounts of the certificate holders.
This final action follows an earlier announcement made by the bank on 8 June 2026, wherein it notified the market and its investors of its intention to exercise the early redemption call.
The bank’s ability to fulfill the total redemption of $500 million reflects its liquidity position and its commitment to meeting its obligations toward international debt investors.
Bank Aljazira launched the offering of its US dollar-denominated additional tier 1 (AT1), marking a significant step in the bank’s international capital-raising strategy.
