Riyad Bank launches SAR 5B AT1 sukuk offering

The subscription period is now open to institutional and individual investors.

In a statement on Tadawul, the bank said the final issuance size will be determined after the offering closes, based on prevailing market conditions.

Riyad Bank said it may elect not to pay any periodic distribution (other than the final periodic distribution), as detailed in the terms and conditions.

It added that certain circumstances may also prohibit it from making any periodic distribution payment, including the final distribution.

The bank said that following an optional non-payment or mandatory non-payment event, it will be prohibited from declaring or paying certain dividends, distributions, or other payments, as specified in the terms and conditions.

It added that if a non-viability event occurs, the sukuk will be written down, in whole or in part, in accordance with the terms and conditions.

The issuance proceeds will be used to strengthen the bank's AT1 capital and for general banking purposes.

Riyad Bank also said it intends to treat the sukuk as equity for Zakat purposes throughout their term.

 Institutional investors must submit a duly completed investor purchase application form to the dealer, while individual investors must submit the form to the receiving entities.

 Subscription is subject to the terms and conditions set out in the investor purchase application form and the base prospectus.