Riyad Bank announced the launch of Tier 1 Additional Capital Sukuk denominated in Saudi Riyal for public subscription under a Tier 1 Additional Capital Sukuk program with a total amount of SAR 10,000,000,000. The issue size has been preliminarily set at SAR 5,000,000,000. The final issue size will be determined after the subscription period ends.

The subscription period runs from today, Tuesday, July 21, 2026, to Monday, August 3, 2026, in accordance with the terms and conditions of the offering and the issuance prospectus. The bank also appointed Riyad Capital as financial advisor, sole arranger, and dealer for the program, after obtaining approval from the Capital Market Authority on 29/12/1447H corresponding to June 15, 2026, for the registration and public offering of the sukuk.

The bank set the minimum investment amount at SAR 1,000 representing the value of a single sukuk, with a par value of SAR 1,000 per sukuk. The sukuk offer a return 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.

Since the sukuk will be listed on the Saudi Stock Exchange (Tadawul), investors will be able to trade the sukuk on the exchange, which will contribute to providing liquidity for the sukuk and offering greater investment opportunities in sukuk for investors in general and individual investors in particular.

Investors, both individuals and companies, can subscribe to the sukuk through the available channels of the receiving entities, which include: Al Rajhi Capital, AlAhli Capital, Al Awwal Investment, Saudi Fransi Capital, Arab Financial Company, Al Bilad Investment Company, Derayah Financial, AlJazira Capital Markets, Riyad Capital, Alinma Investment, Yaqeen Capital, Al Khair Capital, The Investment for Securities and Brokerage, and EFG Hermes Saudi Arabia, according to the issuance prospectus.

The bank clarified that the offered sukuk will be in registered, subordinated, and perpetual form (perpetual securities), with the bank having the option to fully redeem them in certain cases and at specific dates. Profit payments on the sukuk will be subject to certain conditions. For more details, investors should refer to the terms and conditions set out in the base prospectus and the final terms prepared for these sukuk. The proceeds from the offering will be used to support the bank's operational and general financial activities in line with its growth and expansion strategy.

It is worth noting that Riyad Bank holds a leading position in financing emerging non-oil sectors such as tourism, entertainment, and hospitality, in addition to its role in supporting small and medium enterprises and housing finance. The bank also stands out as a leader in green and responsible financing through a developed financing framework, with its actual portfolio reaching SAR 42 billion in sustainable finance.

Riyad Bank is considered 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 journey and a vital artery for the Saudi national economy. The bank has successfully led a structural transformation that catapulted it from sixth to third place in terms of profitability in the region's largest banking market. It manages a vast domestic network of 232 branches, with a global presence in London, Houston, and Singapore. This offering is backed by exceptional figures and solvency indicators that provide investors with a distinguished degree of safety and creditworthiness, as the bank has surpassed the half-trillion riyal mark for the first time in its history, with total assets jumping 15% to SAR 519 billion, compared to SAR 451 billion in the previous year.