Alinma continues Saudi AT1 splurge: IFR
Alinma Bank became the fourth Saudi Arabian bank in less than a month to issue in the US dollar AT1 market, with its deal coming in line with where the two most recent ones priced.
Alinma, which is a publicly listed Islamic bank, though wealth fund Public Investment Fund also owns a 10% share, showed liquidity hasn't dried up despite the supply glut in recent weeks.
Its deal on Tuesday came days after Saudi Awwal Bank and Bank Albilad both issued, with Banque Saudi Fransi kicking off this round of supply in late April.
With the exception of BSF, the other three were issued in sukuk format. All have come tight, even though secondary market performance hasn't held up, with the deals preceding Alinma trading below par.
Against that context, a lead banker said the outcome of the Alinma trade "was strong".
As with Awwal and Albilad, Alinma was issuing a perpetual non-call 5.5-year AT1 note. There were subtle differences between the three.
Awwal and Albilad were making their debuts; Alinma was returning with its second trade.
Alinma and Awwal both had ESG labels – sustainable in the case of Alinma and green for Awwal. Albilad didn't have an ESG label.
Also, Awwal's structure was not compliant with AAOIFI standards, so its buyer base was limited as UAE banks were not allowed to participate. In contrast, both Alinma and Albilad were AAOIFI-compliant.
Alinma opened books on its deal at the 7% area. But with final orders at over US$1.75bn, the bank was able to print US$500m at 6.5%.
The yield was in line with where Awwal and Albilad landed, though size-wise Alinma's deal was smaller, with the other two raising US$650m each.
The lead said the bank "didn't push on size" given the tight pricing. He also said the AAOIFI compliance was "less relevant" for demand because of the amount of recent supply.
Faisal Ali, senior portfolio manager at Azimut, said the price came in line "with our fair value target".
"We were hoping to see some concession on Alinma given elevated supply from the Saudi AT1 space. However, given the demand for high-yield sukuk, the deal got done without the bank leaving anything on the table," he said.
He said the bank's credit profile is supported by its stable asset quality combined with high reserves that cover non-performing loans, rising profitability and solid funding and liquidity profile.
That credit strength is balanced by the bank's concentrated loan book as well as its funding profile.
"The bank has experienced high growth over the last few years, which translates into an unseasoned loan book. Asset quality is likely to weaken going forward, thereby putting some pressure on reserves and capital buffers," he said.
Alinma is rated A2 by Moody's and A– by Fitch.
Abu Dhabi Islamic Bank, Alinma Capital, Emirates NBD Capital, JP Morgan, Goldman Sachs and Standard Chartered were the lead managers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
44 minutes ago
- Zawya
Bahrain Marina appoints CBRE Bahrain to manage retail sector and develop leasing strategy
Manama: Bahrain Marina Development Company, the master developer of the prestigious Bahrain Marina project located along the eastern waterfront of the capital, Manama, has announced the appointment of the leading global commercial real estate services and investment firm CBRE Bahrain to manage and operate the project's retail units. CBRE Bahrain will also be responsible for developing a comprehensive leasing strategy, encompassing the determination of the optimal brand mix, commercial area planning, and occupancy strategies. This appointment reflects Bahrain Marina's commitment to attracting leading international partners to deliver a high-end shopping and entertainment experience, further enhancing the project's appeal as an integrated urban destination that draws visitors from Bahrain and across the region. On this occasion, Bahrain Marina Development affirmed in a press statement that the appointment of CBRE Bahrain marks a pivotal step toward enhancing the commercial value of the Bahrain Marina project's components and establishing a strong foundation for an exceptional shopping experience at the national level. The company noted that CBRE's global expertise will contribute to attracting prestigious retail brands and delivering a unique retail environment that meets the aspirations of both visitors and residents alike. This will be achieved through professional operational management and meticulous strategic planning that ensures sustainable operations and a diverse brand mix. For its part, CBRE Bahrain stated that it is delighted to partner with Bahrain Marina on this landmark project, which represents a significant milestone in Bahrain's real estate development landscape. Leveraging global expertise, CBRE Bahrain will deliver an integrated operational experience designed to enhance the development's overall appeal. As the appointed Property Management firm for the retail component, CBRE Bahrain is committed to supporting Bahrain Marina through a strategic and structured approach to managing this key asset. This partnership aims to elevate the destination's profile, attracting leading international and regional brands that will enrich the commercial offering and reflect the project's unique identity. Under the agreement, CBRE Bahrain will oversee the daily operations of the commercial facilities and will develop an innovative leasing plan, identifying tenant profiles and creating a commercial distribution map, ensuring a balanced mix of retail, hospitality, and complementary services. The Bahrain Marina project spans more than 250,000 square meters and features 128 retail units distributed among a collection of upscale shops, international restaurants, and renowned cafés. It also includes luxurious residential facilities, a state-of-the-art marina, a beach club, and a five-star hotel. Bahrain Marina is positioned as one of the most prominent new waterfront destinations, redefining the shopping, tourism, and entertainment scene in the heart of Manama. For more information, please contact: Bahrain Marina Ahmad Fakhro Email: Notes to Editors: About Bahrain Marina Bahrain Marina is an extraordinary waterfront development strategically positioned on the eastern coast of Manama, the capital of Bahrain. With a development budget of BD 200 million, this landmark project features an array of luxury retail outlets, fine dining restaurants, and internationally renowned cafes. The development also includes a shopping mall, a marina with yacht parking, and an expansive 3,200-square-meter marine club offering a wide range of recreational activities and marine programs, contributing significantly to the Kingdom's tourism sector. In addition, Bahrain Marina provides a unique residential experience with luxurious freehold units, premium hotel accommodations, extensive green spaces, and high-end sports facilities. The project is designed to promote a balanced lifestyle that enhances residents' and visitors' quality of life. For more information and to experience the future of luxury living, please visit About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at
Zawya
44 minutes ago
- Zawya
Sohar International and Sohar Islamic partner with SalamAir to offer ip to 40% off on domestic flights for cardholders
Muscat: In a move to drive cross-sector collaboration and enhance customer experience, Sohar International, together with its Islamic banking window Sohar Islamic, has partnered with SalamAir, Oman's low-cost airline, to offer exclusive discounts on domestic travel for their customers. As part of this strategic alliance, credit cardholders will benefit from a 40% discount, while debit cardholders will receive a 15% discount on the price of all SalamAir domestic flights. The offer, valid for travel between 01 July and 31 August 2025, is available exclusively to Sohar International and Sohar Islamic cardholders. Bookings must be made online via SalamAir's official website using the promo codes provided by Sohar International and Sohar Islamic for both their debit and credit card holders, subject to the offer's terms and conditions. The partnership was formally signed during a signing ceremony held on Tuesday, June 17th, at Sohar International's head office. The joint initiative reflects both entities' commitment to delivering integrated lifestyle benefits and enriching customer value, and to Oman's national development objectives by promoting domestic tourism and enhancing air travel accessibility. Commenting on the strategic importance of the partnership, Mr. Abdul Qadir Al Sumali, Chief Retail & Premier Banking Officer of Sohar International, stated: "Today, banking is no longer just transactional; it must be transformative. At Sohar International, our strategy is rooted in a clear and impactful philosophy—to enrich the lives of those we serve by building integrated ecosystems where finance intersects seamlessly with lifestyle. Our partnership with SalamAir, a leading national low-cost carrier that caters to the travel needs of a broad and diverse customer base, brings this vision to life—delivering everyday value through enhanced convenience, satisfaction, and integrated experiences. More than just a customer offer, this initiative contributes to stimulating domestic air travel, supporting local tourism, and reinforcing our role in advancing Oman's economic diversification agenda in line with Oman Vision 2040." Reiterating this sentiment, Steven Allen, Chief Commercial Officer of SalamAir, added: 'We are proud to collaborate with Sohar International on this meaningful initiative. SalamAir remains deeply committed to supporting the local economy, infrastructure, and financial ecosystem of Oman. This partnership not only reinforces our dedication to making travel more accessible and affordable for the people of Oman but also strengthens domestic tourism, particularly to destinations like Salalah, which play a vital role in the country's tourism sector. By extending this offer to all Sohar International and Sohar Islamic debit and credit cardholders, we aim to promote inclusive travel, encourage local exploration, and contribute to Oman's long-term development goals in line with Oman`s Vision 2040.' Through this strategic collaboration, Sohar International and SalamAir reinforce their commitment to building cross-sector partnerships that enhance customer value and expand the role of banking and aviation beyond traditional boundaries. By aligning financial solutions with evolving travel lifestyle needs, both parties continue to lead with a forward-looking approach that integrates relevance, innovation, and impact into its service offerings. About Sohar International Sohar International is Oman's fastest-growing bank, guided by a clear vision to become a world-leading Omani service company that helps customers, communities, and people prosper and grow. With a purpose to help people 'win' by delivering responsive banking for their ever-changing world, the bank offers innovative solutions across Commercial and Investment Banking, Wealth Management, Islamic Banking, and more. Operating with a strong digital-first approach and an expanding regional footprint—including presence in the Kingdom of Saudi Arabia—Sohar International is committed to driving value through strategic partnerships and a dynamic customer experience. Learn more at About SalamAir SalamAir currently operates a fleet of 13 Airbus A320/321 aircraft, with over 80 daily flights. In 2025, the airline will expand its fleet with two new aircraft scheduled for delivery in July 2025. SalamAir announced a 10-aircraft order in February 2025, aiming to grow its fleet to 25 aircraft by 2028 For more information, visit or .
Zawya
44 minutes ago
- Zawya
BENEFIT receives ISO recertification for information security and business continuity
Manama - BENEFIT, the Kingdom's innovator and leading company in Fintech and electronic financial transactions service, has been officially re-accredited with the upgraded version of ISO 27001:2022 (Information Security Management System) as well as for ISO 22301:2019 (Business Continuity Management Systems). This notable achievement follows the successful completion of a comprehensive joint audit for both standards—conducted with zero non-conformities reported by the certification body. It marks a significant milestone in BENEFIT's operational journey and reinforces its ongoing commitment to the highest standards of quality, information security, and excellence. It also reflects the organisation's strategic emphasis on maintaining robust business continuity frameworks and ensuring consistent service reliability across all operations. The successful recertification serves as an international testament to BENEFIT's commitment to implementing global best practices in the field of data protection and information security, and its consistent efforts to ensure the uninterrupted availability of its financial services and its proactive approach to continuously improve and modernise its internal systems and frameworks. BENEFIT's compliance with the updated versions of both ISO certifications further reflects the integrated and comprehensive security standards it has embedded across all departments and processes, enhancing the trust and confidence of its clients, partners, and stakeholders in its ability to protect sensitive financial data and sustain service delivery. Mr. Badran Bukamal, Head, Risk Management & Information Security at BENEFIT, stated: 'We are proud to have received the re-accreditation of ISO certifications in both Information Security Management System and Business Continuity Management Systems. This accomplishment represents the culmination of years of dedication and hard work by our team, who have once again demonstrated their ability to meet and exceed the highest international standards in cybersecurity and operational sustainability. At BENEFIT, such achievements serve as a catalyst to reinforce our dedication to safeguarding customer data and ensuring the uninterrupted continuity of our operations.' Mr. Bukamal further added: 'These accreditations reflect our vision to position BENEFIT as a secure and dependable fintech provider, trusted by both customers and partners, and recognised for delivering high-quality, distinguished services. They also highlight the important stage of growth the company has achieved, along with our continued investment in business continuity and resilience planning—ensuring that our clients, suppliers, and partners are equipped to navigate unforeseen challenges. In parallel, we remain focused on advancing our information security management capabilities and proactively addressing the evolving landscape of cybersecurity threats.' Media Contacts: Aisha Buhiji Administrator, PR & Corporate Communication ayshab@ The Benefit Company B.S.C (C) P.O Box 2546, Seef District, Kingdom of Bahrain
