Latest news with #AlinmaBank
Zawya
2 days ago
- Business
- Zawya
Saudi: National Building extends credit facility deal with Alinma Bank
Riyadh: National Building and Marketing Company (NBM) has renewed a Shariah-compliant banking facility agreement valued at SAR 135 million with Alinma Bank. The company obtained the funding to support its working capital, according to a bourse disclosure. The revolving facility, which holds a tenor of nine months, is secured by a promissory note and a guarantee of liability and performance, under the lender's terms and conditions. In April 2024, National Building extended a SAR 85 million financing agreement with Alinma Bank.
Zawya
12-06-2025
- Business
- Zawya
Capital sukuk floods debt market as GCC banks look to refinance, diversify funding sources
The debt market was recently awash with Additional Tier 1 (AT1) USD-denominated capital sukuk as GCC banks—including three from Saudi Arabia—rushed to take advantage of tighter spreads, strong investor demand and the ample liquidity in the region for Islamic paper. Here are some of the latest issuances in May: Sharjah Islamic Bank's $500 million AT1 sukuk offering saw books at over $1 billion, tightening prices to 6.125% from initial price thoughts (IPTs) at 6.5%. Kuwait's Warba Bank issued a $250 million AT1 sukuk, with a reoffer yield of 6.25%, tighter than the original price guidance of 6.5%. The bank is in the process of buying a 32.75% stake in Gulf Bank from Alghanim Trading Company LLC, and it completed a 436.7 million dinar ($1.42 billion) rights issuance in April. In Saudi Arabia, Alinma Bank raised $500 million in sustainable AT1 at 6.5%, narrowing from IPTs of around 7% as books climbed to $2 billion. Saudi Awwal Bank issued AT1 green sukuk worth $650 million at 6.5%, and Bank Albilad issued a $650 million AT1 sukuk at a profit rate of 6.5% as well. The wave of issuances was largely driven by upcoming call dates—Sharjah Islamic Bank, for example, has a call in July—and the need to refinance existing instruments while strengthening capital buffers. Saudi banks in particular are experiencing rapid balance sheet growth, which has increased the urgency to shore up their capital ratios. 'While the timing made it seem coordinated, it was more a matter of internal processes and regulator approvals aligning up. The result was a temporary glut, which may have impacted pricing, but there was no sign of market stress,' said a Dubai-based banker. Saudi banks are actively seeking funding to support the massive capex programmes underway in the kingdom and address the need to finance fiscal deficits amid steadily falling oil prices. To meet these demands, banks are also tapping into dollar markets as a way to diversify funding sources. Scarcity premium The banker pointed out that despite similar credit ratings (many Saudi and UAE banks are rated in the 'A' range), there is a noticeable pricing differential. For example, recent AT1 issuances saw Saudi banks pricing around 6.5%, while UAE's Sharjah Islamic priced at 6.125%, reflecting a scarcity premium for the UAE paper. Even with that premium, Saudi AT1 still prices tighter than some global peers. 'This is where relative value becomes critical, especially for global fund managers, who tell us that GCC paper trades too tight relative to global comparables. For a London-based investor who can choose between HSBC, Standard Chartered, and a Saudi Tier 1, the global names often offer better yield for a similar or better credit rating,' the banker said. Some regional funds and investors, in particular those who are constrained by their mandates, do not have the flexibility to buy global banks. But for large, unconstrained institutional players, the value proposition of GCC paper is becoming less compelling, especially as supply continues to build. Meanwhile, the investor base has been heavily skewed—up to 70% of the recent allocations—toward the GCC, according to the banker. Saudi and regional private banks, as well as local institutional investors, have been snapping up the issuances. For Islamic investors, the recent weeks have been a bonanza. Five of the USD AT1 deals issued during May were structured as sukuk and attracted Islamic investors, who have few comparable options outside the region. (Reporting by Brinda Darasha; editing by Seban Scaria)
Zawya
02-06-2025
- Business
- Zawya
Saudi First Avenue secures $85mln Islamic facility from Alinma Bank
Saudi Arabia's First Avenue for Real Estate Development Co. has renewed and expanded the Shariah-compliant credit facility from Alinma Bank of 320 million riyals ($85.3 million). The 5-year facility will be used to support its acquisition plans and for the execution of its real estate projects. The developer has offered as guarantee promissory notes equal to the facility amount and a mortgage on the project land in favor of the bank. The proceeds from the finance project have also been assigned to Alinma Bank. (Writing by Brinda Darasha; editing by Daniel Luiz)
Argaam
26-05-2025
- Business
- Argaam
AOL secures SAR 15M credit facilities from Alinma Bank
Academy of Learning Co. (AOL) obtained SAR 15 million Shariah-compliant credit facilities from Alinma Bank. In a statement to Tadawul, the company said that the funding period is five years starting from May 25, 2025. The amount is covered by a guarantee pursuant to a fine and solidarity bond declaration from the Chairman of the board of directors and a promissory note submitted by AOL to the bank. AOL aims to obtain these facilities in order to expand and increase its revenues in the upcoming period, in line with its strategy and future plans, the statement added, indicating that no related parties are included in the deal.
Zawya
23-05-2025
- Business
- Zawya
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.
