Riyad Bank Offers Tier 1 Sukuk Denominated in Riyal for Subscription at 6.50% Yield

Riyad Bank Offers Tier 1 Sukuk Denominated in Riyal for Subscription at 6.50% Yield

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Riyad Bank announced the start of the public subscription of additional Tier 1 capital sukuk denominated in Saudi riyal, under the additional Tier 1 capital sukuk program with a total value of 10 billion riyals, with the issue size initially set at 5 billion riyals, with the final size to be determined after the subscription period ends.

The subscription period runs from today, Tuesday, July 21, 2026, until Monday, August 3, 2026, according to the terms and conditions of the offering and the prospectus. The bank also appointed Riyad Capital as financial advisor and sole arranger and dealer for the program, after obtaining the approval of the Capital Market Authority on June 15, 2026, for the registration and public offering of the sukuk.

The bank also set the minimum investment amount at 1,000 Saudi riyals representing the value of one sukuk, as the nominal value of each sukuk is 1,000 Saudi riyals, with a yield of 6.50% per annum, distributed to investors quarterly (every three months). The sukuk are treated as capital for zakat purposes according to relevant regulations.

He added that the sukuk will be listed on the Saudi Stock Exchange (Tadawul), allowing investors to trade them after listing, and the subscription will be available to individuals and companies through the receiving entities, which include: Al Rajhi Capital, Al Ahli Capital, Al Awwal Investment, Saudi Fransi Capital, Arabi Capital, Al Bilad Investment, Derayah Capital, Al Jazeera Financial Markets, Riyad Capital, Alinma Financial, Yaqeen Financial, Al Khair Financial, Al Istithmar for Securities and Brokerage, and EFG Hermes Saudi Arabia.

The bank explained that the sukuk will be registered, subordinated, and perpetual (with no fixed maturity date), with the bank having the right to redeem them in full in specific cases and dates according to the issuance terms. The profit distributions are subject to the terms and conditions of the sukuk as set out in the base prospectus and final terms.

He pointed out that the proceeds of the offering will be directed to support the bank's operational and general financial activities in line with its growth and expansion strategy.

Riyad Bank is one of the leading national banks, after seven decades of innovation and shaping the banking landscape, and major partnerships with both the government and private sectors, making it a key partner in the development process and a vital artery for the Saudi national economy. The bank has successfully led a structural transformation process that jumped it from sixth to third place in terms of profitability in the largest banking market in the region. It manages a huge local network of 232 branches, with a global presence in London, Houston, and Singapore. Meanwhile, this offering comes with exceptional numbers and solvency indicators that give investors a distinguished degree of safety and creditworthiness, as the bank succeeded in exceeding the half-trillion riyal barrier for the first time in its history, with total assets jumping by 15% to reach 519 billion Saudi riyals, compared to 451 billion riyals in the previous year.

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