Al-Eqtisadia from Riyadh

Tuesday, July 21, 2026 1:06 PM | 1 minute read

Riyad Bank has started the offering of additional Tier 1 capital sukuk denominated in Saudi riyals with an initial value of 5 billion riyals, according to an announcement it made in a disclosure published on Tadawul on Tuesday.

The bank had earlier this month announced its intention to issue additional Tier 1 capital sukuk denominated in Saudi riyals as part of a 10 billion riyals program.

The final value of the issuance will be determined after the offering period ends, based on market conditions at the time. The offering will close on August 3.

Also read: Saudi Arabia conducts early buyback of domestic debt worth 17.1 billion riyals

The sukuk will be offered to natural and legal persons eligible to subscribe to the sukuk, whether inside Saudi Arabia or in any jurisdiction where the offering is lawful.

The bank has appointed Riyad Financial as financial advisor, sole arranger and dealer for the offering and issuance of the sukuk.

The minimum subscription is one sukuk, with a nominal value of 1,000 riyals. The return is up to 6.5% fixed annual return paid quarterly. These are perpetual sukuk subject to early redemption at the call date starting from the fifth anniversary.

Also read: Saudi Aljazira Bank redeems sukuk worth $500 million

The bank has the option not to pay any periodic distribution amount, except for the final periodic distribution amount. However, there are circumstances in which the bank is prohibited from paying any periodic distribution amount, including the final periodic distribution amount.

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