SNB to Issue USD-denominated Tier-2 Debt Instruments

National Commercial Bank (NCB), now known as Saudi National Bank (SNB) is planning to issue US dollar-denominated Tier 2 debt instruments under its Euro Medium-Term Debt Instrument (EMTI) program through a special purpose vehicle (SPV) and offer them to qualified investors both inside and outside Saudi Arabia.

In a bourse filing with Saudi main exchange Tadawul on Thursday, the bank said that the potential offering aims to enhance Tier 2 capital for the National Commercial Bank of Saudi Arabia’s general commercial purposes and meet its financial and strategic objectives.

The value and terms of the debt offering will be determined later based on market conditions and will be subject to the approval of the relevant regulatory authorities, where applicable, and will be in accordance with relevant rules and regulations.

National Commercial Bank, the largest financial institution in Saudi Arabia, was founded in 1953 with a capital of $15.99 billion and was listed on the Saudi Stock Exchange in 2014. Its market capitalisation stands at $54.22 billion following its merger with Samba Group in 2021.

Saudi Arabia’s sovereign wealth funs Public Investment Fund (PIF) owns the largest stake in the bank, at 37%.

Joint Lead Managers and Joint Bookrunners

The Saudi National Bank has mandated Abu Dhabi Commercial Bank, DBS Bank Ltd., Emirates NBD Bank, Goldman Sachs International, HSBC Bank, J P Morgan Securities, Mashreq Bank, Mizuho International, SNB Capital Company, SMBC Bank International, and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners in relation to the proposed offer.

The bank also noted that the announcement does not constitute an invitation or offer to purchase, own, or subscribe for any securities, and is subject to the terms and conditions of the debt instruments. The National Commercial Bank will announce any further material developments in due course, in accordance with relevant rules and regulations.

The amount and terms of the offer of the Notes will be determined at a later stage based on market conditions.

The purpose of the offer is for Improvement of Tier 2 Capital, general corporate purposes and to fulfil The Saudi National Bank’s financial and strategic objectives.

The proposed offer of the Notes will be subject to the approval of the relevant regulatory authorities, as applicable, and will be made in compliance with relevant laws and regulations.