Alinma Bank Plans SAR 5B AT1 Sukuk Redemption by July 2026

Alinma Bank will redeem its SAR 5 billion Additional Tier 1 capital sukuk at par on July 1, 2026, the lender said in a bourse filing. The bank is exercising the call option on the perpetual instrument, which was issued in 2020 with a five-year call date. Redemption at face value means no premium payment.

The move brings Alinma in line with the standard call schedule for AT1 paper across Gulf markets. Other Saudi banks with similar outstanding instruments, including Bank AlJazira, may face similar decisions as their call dates approach. Bank AlJazira recently announced plans for a new USD-denominated AT1 sukuk, a signal that the sector is actively managing its capital stack.

Sukuk holders will receive the principal amount plus accrued profit through the redemption date. The Saudi riyal proceeds will be paid through the clearing system. The redemption is subject to customary regulatory approvals, Alinma said.

The SAR 5 billion sukuk was listed on the Saudi bourse and carried a profit rate of 2.5% above the three-month SAIBOR. Its removal from the market will free up room on the bank's balance sheet for new funding needs.