Riyadh – Mubasher: Riyad Bank has completed the issuance of SAR-denominated Tier 2 capital-eligible Sukuk worth SAR 3 billion.
A total of 3,000 Sukuk were offered by way of a private placement in Saudi Arabia with a nominal value of SAR 1 million, according to the bank's disclosure to the Saudi Stock Exchange (Tadawul) on Tuesday.
The return of Sukuk is a 6-month SAIBOR and a profit margin of 150 basis points.
The Sukuk has a 10-year maturity period callable at the fifth year, subject to the terms and conditions of the Sukuk.
Meanwhile, the Sukuk could be redeemed prior to the maturity date in certain cases, including a capital disqualification, a tax event, a default event, or an issuer call option.
It is noteworthy to mention that on 20 January, the bank began offering SAR-denominated Tier 2 capital-eligible Sukuk by way of a private placement in Saudi Arabia.