Riyad Bank Issues Prospectus for a Capital Sukuk Program Worth 10 Billion Riyals

Riyad Bank Issues Prospectus for a Capital Sukuk Program Worth 10 Billion Riyals

Riyad Bank logo

Riyad Bank announced the base prospectus for establishing a general program to issue Additional Tier 1 Capital Sukuk, with a total nominal value not exceeding 10 billion riyals.

The program allows the bank to issue up to 10 million sukuk, with a nominal value of 1,000 riyals per sukuk, to be issued in multiple tranches or series according to the bank’s needs and the final terms of each issue.

Riyad Bank will use the net proceeds of each issue to enhance Additional Tier 1 capital, in addition to financing general banking purposes, according to the investment plan stipulated in the master Mudarabah agreement.

The sukuk are offered to qualified natural and legal persons for subscription inside the Kingdom or in any jurisdiction where the offer is legally permitted.

The size of each issue, the offering period, the profit rate, distribution dates, minimum subscription, and allocation mechanism will be determined in the final terms of each series.

On June 15, 2026, the bank obtained approval from the Capital Market Authority to register and publicly offer the sukuk under a program not exceeding 10 billion riyals, and also obtained conditional approval from Saudi Tadawul for the listing of the sukuk, and non-objection from the Saudi Central Bank to issue sukuk up to a total amount of 5 billion riyals.

Key information about the sukuk program

Issuer

Riyad Bank

Program type

General program for Additional Tier 1 Capital Sukuk

Maximum program size

10 billion riyals

Maximum number of sukuk

10 million sukuk

Nominal value per sukuk

1,000 riyals

Issue currency

Saudi riyal

Sukuk issue price

100% of nominal value

Sukuk tenor

Perpetual without fixed mandatory maturity date

Issue method

Multiple series or tranches from time to time

Financial advisor and arranger

Sole, dealer, and holders' agent

Sukuk and paying agent

Riyad Capital

Receiving entities

Riyad Capital, AlAhli Financial, AlRajhi Financial, AlBilad Investment, AlAwwal Investment, BFC Capital, Arabi Financial, AlJazira Capital, AlInma Investment, Derayah Financial, Yaqeen Financial, AlKhabeer Financial, Investment Capital, and EFG Hermes

To view the sukuk program prospectus

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