Riyad Bank launches SAR 5B AT1 sukuk offering

Riyad Bank announced the launch of SAR-denominated Additional Tier 1 (AT1) sukuk offering, with an initial target size of SAR 5 billion.

The subscription period is now open to institutional and individual investors.

In a statement on Tadawul, the bank said the final issuance size will be determined after the offering closes, based on prevailing market conditions.

Details
Issue Type	SAR-denominated Additional Tier 1 (AT1) sukuk
Offer Value	Initial target size of SAR 5 billion. The final issuance size will be determined after the offering period based on prevailing market conditions.
Offering Start Date	July 21, 2026
Offering End Date	August 3, 2026
Target Investors	Eligible individual and institutional investors in Saudi Arabia and other jurisdictions where the offering are legally permitted.
Lead Manager	Riyad Capital was appointed sole financial advisor, sole arranger and dealer for the sukuk issuance.
Minimum Subscription	One sukuk with par value of SAR 1,000
Issue Price	SAR 1,000
Par value	SAR 1,000
Profit Rate	6.50% fixed per annum, payable quarterly, subject to any cancellation in accordance with the terms and conditions.
Maturity	Perpetual sukuk, callable from the fifth anniversary in accordance with the terms and conditions and the applicable final terms.
Redemption	The sukuk have no fixed maturity date but may be redeemed under certain circumstances as set out in the base prospectus and the applicable final terms.
Receiving entities	Albilad Investment, Al Rajhi Capital, SNB Capital, SAB Invest, Saudi Fransi Capital, ANB Capital, Derayah Financial, AlJazira Capital, Riyad Capital, Yaqeen Capital, Alkhabeer Capital, Alistithmar Capital, EFG-Hermes

Riyad Bank said it may elect not to pay any periodic distribution (other than the final periodic distribution), as detailed in the terms and conditions.

It added that certain circumstances may also prohibit it from making any periodic distribution payment, including the final distribution.

The bank said that following an optional non-payment or mandatory non-payment event, it will be prohibited from declaring or paying certain dividends, distributions, or other payments, as specified in the terms and conditions.

It added that if a non-viability event occurs, the sukuk will be written down, in whole or in part, in accordance with the terms and conditions.

The issuance proceeds will be used to strengthen the bank's AT1 capital and for general banking purposes.

Riyad Bank also said it intends to treat the sukuk as equity for Zakat purposes throughout their term.

Institutional investors must submit a duly completed investor purchase application form to the dealer, while individual investors must submit the form to the receiving entities.

Subscription is subject to the terms and conditions set out in the investor purchase application form and the base prospectus.

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