ANB to Call $750 Million Tier-2 Sukuk in October

Arab National Bank’s trustee has confirmed the full redemption of the U. S.$750 million fixed-rate resettable Tier-2 sukuk due 2030 will take place on 28 October 2025 at face value. The move marks the instruments’ first callable date, triggering the trust’s wind-down and delisting from public markets.

The certificates, issued on 28 October 2020, will be redeemed under Condition 9.2 of their terms. Holders are to receive the “Dissolution Distribution Amount” comprising principal plus any accrued but unpaid distributions through to the redemption date. Once redeemed, the trust will dissolve and the securities will cease to represent any interest in the trust assets. The certificates will be cancelled and removed from the Official List maintained by the UK Financial Conduct Authority and from the London Stock Exchange’s regulated market.

Market commentators regard the call as a standard structural step rather than a signal of stress, given that the sukuk contractually permitted early dissolution. That said, the redemption does free up capital previously encumbered and resets ANB’s debt profile.

The announcement arrives shortly after ANB completed the issuance of a U. S.-dollar-denominated sustainable Additional Tier 1 sukuk in September 2025, raising U. S.$750 million. That instrument carries a coupon of 6.4 per cent and is callable after five years. Its issuance is part of ANB’s broader capital management and sustainable finance strategy.