Riyad Bank announced the launch of an additional Tier 1 sukuk denominated in Saudi riyals.
This is part of a sukuk program with a total value of 10 billion riyals.
This offering is part of the bank’s plans to strengthen its capital base and support its banking operations.
In a statement published on the Saudi Tadawul website
the bank explained that the initial value of the issuance is 5 billion riyals.
However, the final value will be determined after the subscription period ends, depending on market conditions and the level of demand.
The subscription period begins on July 21, 2026, and runs through August 3, 2026.
Participation is open to both institutional and individual investors. The minimum subscription is one instrument, with a face value and offering price of 1,000 riyals.
The issuance offers investors a fixed annual return of 6.5%, payable quarterly.
This is subject to circumstances that may allow for the cancellation of distributions in accordance with the approved terms and conditions.
These sukuk are perpetual and have no final maturity date; however, the bank has the right to redeem them starting on the fifth anniversary of the issuance, in accordance with the offering prospectus.
Riyad Bank noted that the proceeds from the offering will be used to strengthen capital and finance general banking purposes.
It also stated that the sukuk may be subject to a partial or total write-down in the event of a non-viability event, in accordance with regulatory requirements.
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