EM CEEMEA CREDIT: Alinma Bank: FV for $ 500mnWNG PNC5.5 AT1 Sukuk
Aug-27 07:34
(ALINMA; A2/A-/A-)
IPT @ 6.75% area FV @ 6.30% area
- Our FV considerations show z+290bp (or 6.30% yield area) for Saudi Arabia’s Alinma Bank proposed $ 500mnWNG AT1 Sukuk deal (PNC5.5), with IPT indicated at 6.75% area (that is z+334bp). We note that the deal size is indicated capped at $ 500mn.
- When looking for comparables, we focus on recent $ AT1 Sukuk deals, all larger in size, including those of Bank Albilad (ALBIAB; A2/NR/A-) charting at 6.30% (z+288bp, priced back in May at 6.50%), Saudi Awwal Bank (SABBAB; A1/NR/A-) charting at 6.05% (z+262bp, price back in May at 6.50%) and Saudi Investment Bank (SIBCAB; A2/BBB+/A-) charting at 5.99% (z+258bp, priced back in Nov ’24 at 6.375%). We also look at higher rated Al Rajhi Bank (RJHIAB; Aa3/A/A-) charting at 5.85% (z+244bp, priced back in Jan at 6.25%).
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