Riyadh – Mubasher: Riyad Bank has successfully completed the issuance and subscription of its Tier 1 capital Sukuk, raising the total offering size to SAR 10 billion.
The bank initially targeted SAR 5 billion but increased the issuance following robust investor demand, with total subscriptions reaching SAR 13.59 billion, representing a coverage ratio of 2.7 times.
The bank issued 10 million perpetual instruments with a par value of SAR 1,000 each. The Sukuk offers a fixed annual return of 6.50% payable on a quarterly basis.
According to the terms, the rate will be reset on 13 August 2031, and every five years thereafter. While the instruments are perpetual with no fixed maturity date, Riyad Bank retains the option for early redemption starting from the fifth anniversary of the issuance.
The bank confirmed that the allocation of Sukuk to investors was finalized on 9 August 2026, with settlement scheduled for 13 August.
Proceeds from the offering will be utilized to strengthen the bank’s Tier 1 capital base and support general corporate purposes.
The Sukuk will be listed and traded on the Saudi Exchange (Tadawul) following the completion of regulatory procedures.
Last July, the lender began the public offering and subscription period for its Saudi riyal-denominated Additional Tier 1 capital sukuk.
