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Riyad Bank secures SAR 3.75bn from Additional Tier 1 capital Sukuk offering

Riyad Bank secures SAR 3.75bn from Additional Tier 1 capital Sukuk offering
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Riyadh – Mubasher: Riyad Bank closed the offering of SAR-denominated Additional Tier 1 capital Sukuk on 5 October 2022 at a total value of SAR 3.75 billion through a private placement.

Based on the minimum denomination and total issue size, the number of Sukuk notes reached 15,000 at a par value of SAR 250,000 each, according to a bourse disclosure.

Meanwhile, the annual rate of return of the perpetual Sukuk stood at 5.25%, which will be paid on a quarterly basis, starting from the issuance date and until 5 October 2027.

The lender pointed out that the Sukuk may be redeemed in certain cases as detailed in the offering circular, adding that the rate of return will be reset on the mentioned date and every five years thereafter.

It is worth noting that Riyad Bank commenced the issuance of the offering in September 2022.

In the first half (H1) of 2022, the Saudi bank registered SAR 3.16 billion in net profit, up 10.44% year-on-year (YoY) from SAR 2.86 billion.