BSF to issue $533m Islamic bond by end-June
Banque Saudi Fransi (BSF) plans to sell an Islamic bond, worth around SR2bn ($533m), to boost its capital, with a deal likely to happen by the end of June, Reuters has reported, citing two banking sources aware of the matter. The sukuk will enhance the bank’s Tier 2, or supplementary, capital. BSF’s total capital adequacy ratio at the end of March, which combines both Tier 1 and Tier 2 capital and is a key indicator of the bank’s financial health, stood at 15.57%, down from 16.29% at the same time last year, according to its latest financial statement. Its total capital adequacy ratio at the end of March was 15.63%.