NCB picks lenders for sukuk issue

February 2, 2014 12:41 am

Saudi lender, National Commercial Bank (NCB) has selected NCB Capital, Gulf International Bank, the Saudi units of HSBC and JP Morgan to arrange a local currency sukuk, joining a trend of lenders in the kingdom using Islamic bond markets to top up their capital reserves, Reuters has reported. The sukuk will enhance the NCB’s Tier 2 capital and will have a 10-year lifespan, with an option of the bank redeeming the instrument after five years. The size of the issue has yet to be determined.