Saudi lender Alinma Bank (1150) has begun the offering of US dollar-denominated sustainable Additional Tier 1 capital certificates under its Additional Tier 1 Capital Certificate Issuance Programme, the Tadawul-listed bank said in a regulatory filing on May 20.

The certificates will be issued through a special purpose vehicle and offered to eligible investors in Saudi Arabia and internationally. The offer opened on May 20 and is expected to close on May 21, subject to market conditions.

The amount and terms of the sustainable Additional Tier 1 capital certificates will be determined according to market conditions. The certificates carry a perpetual maturity, callable after five and a half years, with a minimum subscription of $200,000 and increments of $1,000 thereafter.

The certificates will be listed on the International Securities Market of the London Stock Exchange and may only be sold in reliance on Regulation S under the US Securities Act of 1933.

Alinma Bank has mandated Abu Dhabi Islamic Bank, Alinma Capital, Arqaam Capital, ASB Capital, Citigroup Global Markets, DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Goldman Sachs International, J.P. Morgan Securities, Mashreqbank acting through its Islamic Banking Division, Standard Chartered Bank and Warba Bank as joint lead managers.

The certificates may be redeemed in certain cases as detailed in the offering circular for the Additional Tier 1 Capital Certificate Issuance Programme.

Alinma Bank is one of Saudi Arabia's largest Sharia-compliant lenders and is listed on the Saudi exchange Tadawul. The sustainable label on the certificates is intended to align the proceeds with environmental and social financing objectives, in line with growing regional demand for instruments tied to sustainability frameworks.

Saudi banks have been active issuers of Additional Tier 1 instruments to bolster capital buffers as the kingdom funds large-scale projects under the Vision 2030 economic diversification programme. The wider Gulf market has seen rising volumes of dollar-denominated Islamic capital instruments as regional lenders tap international investor demand.