| Banque Saudi Fransi (BSF), part-owned by Credit Agricole, will close a SR1.9 billion ($506.6 million) Lower Tier 2 Islamic bond issue today (Tuesday), a source familiar with the matter said. The subordinated sukuk will boost Banque Saudi Fransi’s supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring.
Banks in the Kingdom have been boosting capital reserves through debt issuance this year, despite having healthy levels in comparison to international peers, as they look to replenish reserves after strong lending growth in recent years..............................................Full Article: Source
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