Riyad Bank Announces Start of Offering Sukuk Denominated in Riyals with Preliminary Value of 5 Billion Riyals

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Riyad Bank announced the start of offering Additional Tier 1 sukuk denominated in riyals and the start of the subscription period for institutions and individuals, where the issue value has been initially set at 5 billion riyals.

It added in a statement on Tadawul that the final issue value will be determined after the end of the offering period based on market conditions at that time.

The following table illustrates the details of the issue:

Issue details

Type of issue

Additional Tier 1 sukuk denominated in riyals

Offering value

The issue value has been initially set at 5 billion riyals, and the final issue value will be determined after the end of the offering period based on market conditions.

Offering start date

July 21, 2026

Offering end date

August 3, 2026

Target group of the issue

Natural and legal persons who are entitled to subscribe to the sukuk, whether inside the Kingdom of Saudi Arabia or in any jurisdiction where the offering of the sukuk is lawful.

Entity responsible for managing the issue

Appointment of Riyad Capital as financial advisor, sole arranger, and dealer in connection with the offering and issuance of the sukuk.

Minimum subscription

One sukuk, with a nominal value of 1,000 riyals.

Offering price (sukuk/bond)

1,000 riyals

Nominal value

1,000 riyals

Yield (sukuk/bond)

6.50% fixed per annum, paid on a quarterly basis, subject to any cancellation carried out in accordance with the terms and conditions.

Maturity (sukuk/bond)

Perpetual sukuk (subject to early redemption on the call date starting from the fifth anniversary thereof in accordance with the terms and conditions or as specified in the base prospectus and the applicable final terms relating to the sukuk).

Redemption eligibility conditions

The sukuk are perpetual securities and thus have no fixed or final redemption date. However, they may be redeemed in certain cases as detailed in the base prospectus and the applicable final terms relating to the sukuk.

Receiving entities

Al Bilad Investment, Al Rajhi Capital, Al Ahli Capital, Alawwal Invest, Saudi Fransi Capital, Arab National Investment, Derayah Financial, Al Jazira Capital, Riyad Capital, Alinma Investment, Yaqeen Capital, Al Khair Capital, Alistithmar for Securities and Brokerage, EFG Hermes Saudi Arabia.

The bank said in a statement on Tadawul that it has the option not to pay any periodic distribution amount (except for the final periodic distribution amount) as detailed in the terms and conditions ("Non-payment option").

There are also circumstances in which the bank is prohibited from paying any periodic distribution amount (including the final periodic distribution amount), as detailed in the terms and conditions ("Non-payment event").

It added that as of the date of the "Non-payment option" or "Non-payment event", the issuer is prohibited from declaring or paying certain distributions, profits, or other payments, as detailed in the "Terms and Conditions".

It mentioned that in the event of a non-viability event and as specified in the terms and conditions, the value of the sukuk will be partially or fully written down, where the bank will use the proceeds of the sukuk offering to enhance Tier 1 capital and for general banking purposes as set out in the base prospectus.

It added that it intends to treat the sukuk as capital/equity for zakat purposes throughout their duration, and institutional investors wishing to purchase the sukuk must submit a properly completed investor purchase order form to the dealer.

With regard to individual investors, they must submit a properly completed investor purchase order form to the receiving entities.

The purchase of sukuk by investors is subject to fulfillment of the terms and conditions contained in the investor purchase order form and the base prospectus.

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