Riyad Bank intends to issue additional Tier 1 capital sukuk denominated in Saudi riyal, through a public offering under a sukuk program with a total value of 10 billion riyals.

The bank explained in a statement on "Saudi Tadawul" on Monday that the offering value will be determined at a later stage according to market conditions, noting that the purpose of the issuance is to strengthen Tier 1 capital, in addition to using the proceeds for the bank's general purposes as stated in the base prospectus.

The bank noted the appointment of Riyad Capital as financial advisor, sole arranger, and dealer for the purposes of establishing the program and executing the issuance and offering.

It added that the Capital Market Authority approved the registration and offering of the sukuk under the program, and the bank obtained conditional approval from "Saudi Tadawul" for listing the sukuk, in addition to no objection from the Saudi Central Bank for the issuance.

The bank pointed out that it may conduct marketing rounds before the start of the offering period with specific categories of investors to gauge the level of demand and interest in the issuance, stressing that the announcement does not represent an invitation or offer to subscribe or purchase the sukuk, and that it will announce any material developments in due course, according to relevant regulations and laws.

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