DUBAI, June 19 (Reuters) - Saudi Arabia’s Bank Al Bilad has received regulatory approval to issue a capital-boosting sukuk worth as much as 2 billion riyals ($533.3 million), it said in a bourse statement on Sunday.
The issue will enhance its Tier 2, or supplementary, capital and last for 10 years, although the bank has the option to redeem the sukuk after the fifth year, according to the filing.
Sources told Reuters last month that Bank Al Bilad, one of the smaller lenders in Saudi Arabia, had chosen HSBC’s local unit to arrange the Islamic bond offering. ($1 = 3.7502 riyals) (Reporting by David French; Editing by Gareth Jones)
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