Riyadh – Mubasher: Riyad Bank commences the public offering and subscription period for its Saudi riyal-denominated Additional Tier 1 capital sukuk.
The initial value of the issuance is set at SAR 5 billion, though the final amount will be determined following the conclusion of the offering period based on prevailing market conditions.
The offering falls under the bank’s SAR 10 billion Additional Tier 1 capital sukuk program. The perpetual securities carry a fixed annual return of 6.50%, payable on a quarterly basis.
Each sukuk has a par value of SAR 1,000, which also serves as the minimum subscription limit.
The subscription period for both institutional and individual investors begins on July 21, 2026, and is scheduled to conclude on 3 August 2026.
Riyad Bank has appointed Riyad Capital as the sole financial advisor, lead arranger, and dealer for the issuance.
Proceeds from the offering will be utilized to strengthen the bank’s Tier 1 capital base and support general banking purposes.
The sukuk are perpetual instruments with no fixed maturity date, though they are subject to early redemption options starting from the fifth anniversary of issuance, in accordance with the terms of the base prospectus.
In the first half (H1) of 2026, the bank logged a net profit of SAR 5.26 billion, up 3.54% from the SAR 5.08 billion a year before.
