Riyad Bank has announced the commencement of the offering of its additional tier 1 capital sukuk denominated in Saudi Riyals, for public subscription, under the bank's additional Tier-1 Capital Sukuk Program in the aggregate program amount of SR10,000,000,000.
The issue size has been preliminarily set at SR5,000,000,000, and the final issue size will be determined upon completion of the offering period.
The offering period will run from July 21 to Aug. 3 in accordance with the terms and conditions of the offering and the prospectus.
Riyad Bank has appointed Riyad Capital as the financial advisor, sole arranger, and dealer for the program, having obtained the approval of the Capital Market Authority on the registration and public offering of the Sukuk on 29/12/1447, corresponding to 15/06/2026.
Riyad Bank has set the minimum investment amount at SR1,000, representing the value of a single sukuk, with a nominal value of SR 1,000 per sukuk.
The sukuk carry an annual yield of 6.50 percent distributed to investors on a quarterly basis (every three months). The sukuk are treated as a capital for Zakat purposes in accordance with applicable regulations.
As the sukuk will be listed on the Saudi Stock Exchange (Tadawul), investors will be able to trade the sukuk on the exchange, which will enhance liquidity for sukuk and provide broader investment opportunities for investors in general, and retail investors in particular.
Individuals and institutional investors may subscribe to the sukuk through the channels made available by the receiving entities. As prescribed in the prospectus, receiving entities include Al Rajhi Capital, SNB Capital, SAB Invest, BSF Capital, ANB Capital, Albilad Capital, Derayah Financial, Al Jazira Capital, Riyad Capital, Alinma Capital, Yaqeen Capital, AlKhabeer Capital, Alistithmar Capital and EFG Hermes Saudi Arabia.
Riyad Bank clarified that the offered sukuk are in registered form, subordinated and have no fixed maturity date (perpetual securities), with the bank retaining the option to redeem them in full on specified dates and under certain conditions.
Payments of profit on the sukuk will be subject to certain conditions. For further details, investors should refer to the terms and conditions detailed in the base prospectus and final terms prepared in respect of the sukuk. The offering proceeds will be directed toward supporting the bank's general operational and financial activities, in line with its growth and expansion strategy.
It is worth mentioning that Riyad Bank is a leader in financing emerging non-oil sectors, including tourism, entertainment, and hospitality, in addition to its role in supporting small and medium-sized enterprises and housing finance.
The bank also stands out as a leader in green and responsible finance through its advanced financing framework, with an actual sustainable finance portfolio reaching SR42 billion.
Riyad Bank is a leading national institution, with seven decades of innovation and a legacy of shaping the banking landscape, alongside major partnerships with both the government and private sectors, making it a cornerstone of development and a vital artery of the Saudi national economy.
Successfully achieved a structural transformation, the bank catapulted to rank third instead of sixth in terms of profitability within the region's largest banking market.
It manages a large-scale local network comprising 232 operating branches, with a global presence in London, Houston, Singapore, and Shanghai.
The sukuk offering is backed by exceptional financial figures and solvency indicators, providing investors with a distinguished degree of security and creditworthiness.
The bank surpassed the half-trillion Saudi Riyals mark for the first time in its history by the year-end 2025, with its total assets reaching to SR 519 billion by 15 percent increase compared with SR 451 billion in the previous year.
