Riyad Bank completes SAR 10B sukuk offering with 2.7x coverage

Riyad Bank said that total subscription orders amounted to SAR 13.59 billion
Riyad Bank completed the offering of SAR-denominated Additional Tier 1 Capital Sukuk, after increasing the issue size to SAR 10 billion from an initial SAR 5 billion.
 
The bank said in a statement on Tadawul that total subscription orders amounted to SAR 13.59 billion, with a coverage of more than 2.7 times.
 

Issue Details

Issue Type

SAR-denominated AT1 sukuk

Issue Size

Increased to SAR 10 bln from the initial SAR 5 bln

Total Number of Sukuk

10 mln sukuk

Nominal Value per Sukuk

SAR 1,000

Sukuk Return

Fixed at 6.50% annually, payable quarterly, subject to any cancellation in accordance with the terms and conditions. The return will be reset on Aug. 13, 2031 (the First Reset Date), and thereafter every five years following the First Reset Date, as set out in the applicable final terms relating to the sukuk.

Sukuk Maturity

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

Redemption Conditions

The sukuk are perpetual securities and therefore have no fixed or final redemption date. However, they may be redeemed under certain circumstances as detailed in the base offering circular and applicable final terms relating to the sukuk.

Completion of Sukuk Allocation

Aug. 9, 2026

Completion of Sukuk Settlement

Aug. 13, 2026

Refund  

Aug. 13, 2026. Excess subscription funds will be deposited into the accounts of eligible investors in accordance with the procedures followed by the relevant parties.

Sukuk Listing and Trading on Tadawul

Following completion of all regulatory procedures required for listing the sukuk, with an announcement to be made in due course.
 

The bank added 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 election).

 

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).

 

From the date of a non-payment election or non-payment event, the issuer will be prohibited from declaring or paying certain dividends, distributions or other payments, as detailed in the terms and conditions.

 

If a non-viability event occurs, as described in the terms and conditions, the sukuk will be partially or fully written down.

 

The bank said it will use the proceeds from the sukuk offering to strengthen its AT1 capital and for general banking purposes, as specified in the base offering circular.

 

The bank intends to treat the sukuk as capital/equity for Zakat purposes throughout their tenor.

 

According to Argaam data, Riyad Bank announced last month the launch of SAR-denominated AT1 sukuk and the opening of the subscription period for institutional and individual investors, with the initial issue size set at SAR 5 billion.

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