Riyad Bank Completes SAR 3 Billion Tier 2 Capital-Eligible Sukuk Issuance to Strengthen Capital Base

Saudi-based Riyad Bank has announced the completion of its issuance of a SAR-denominated domestic Tier 2 capital-eligible Sukuk (Tier 2 Sukuk) worth SAR 3 billion via private placement, according to a Tadawul statement released on the 9th of February 2021. The Tier 2 Sukuk issuance is part of Riyad Bank’s domestic SAR-denominated Sukuk issuance programme of up to SAR 10 billion, which was announced on the 19th of January 2021, in order to issue and offer Senior and/or Subordinated Sukuk.

The issuance amount was SAR 3 billion worth of Tier 2 Sukuk, made up of a total of 3,000 Sukuk with a nominal value of SAR 1 million. The issuance carries a six-month Saudi Arabian Interbank Offered Rate (SAIBOR) in addition to a profit margin of 150 basis points. According to an earlier...