Riyad Bank Launches Private Placement for SAR-Denominated Tier 1 Sukuk

Riyad Bank said in a statement on Tuesday that it has commenced the offering of a Saudi riyal (SAR)-denominated additional Tier 1 capital sukuk through private placement.

The issuance, part of its SAR 10 billion additional Tier 1 sukuk program, is targeted at institutional and qualified investors under the Capital Market Authority’s rules on securities offerings. Riyad Capital has been appointed as the sole lead manager for the transaction.

The offering began on Jan. 7 and will run until Jan. 16. The bank noted that the minimum subscription is set at SAR 250,000, with the price, return, and total issuance size to be determined based on prevailing market conditions.

The Sukuk are perpetual instruments with no fixed maturity date. However, they are subject to early redemption on specified call dates or under conditions outlined in the offering circular and final terms.

Riyad Bank emphasised that the offering is not an invitation or solicitation to purchase securities and that further material developments will be disclosed as required by regulatory guidelines.