Riyad Bank wraps up SAR 2 bn AT1 sukuk offering

Riyad Bank closed a SAR 2 bn additional tier 1 (AT1) capital sukuk offering on Thursday, it said in a disclosure to Tadawul. The offering — executed via private placement as part of the bank’s SAR-denominated SAR 10 bn AT1 sukuk program — saw 8k certificates sold at 6% annual return, each with a SAR 250k par value. The offering is also perpetual, meaning that there is no fixed maturity date. However, the sukuk are callable under specific terms defined in the terms sheet.

Where will the money go? Proceeds from the sale will support the lender’s capital base and general banking purposes.

REMEMBER- Riyad Bank had announced its intention to sell the sukuk on 1 January, with subscriptions kicking off a week later. The lender tapped Riyad Capital as sole lead manager for the offering.