Riyad Bank plans additional tier-1 sustainable sukuk

Riyad Bank announced its intention to issue USD-denominated additional tier-1 capital sukuk under its international additional tier-1 capital sukuk program, established by the bank on Sept. 10, following the decision of the board of directors on Aug. 19.

In a statement to Tadawul, the sukuk, to be issued through a special purpose vehicle, will be available to qualified investors domestically and internationally.

The bank appointed HSBC plc, Kamco Investment Co. K.S.C.P., Merrill Lynch International, Mizuho International plc, Morgan Stanley & Co. International plc, Riyad Capital, SMBC Nikko Capital Markets Ltd., Standard Chartered Bank, and Warba Bank K.S.C.P. as joint lead managers and bookrunners for the potential offering. Riyad Bank said the value and terms of the sukuk offering will be determined based on prevailing market conditions.

The primary objective of the offering is to bolster tier-1 capital, addressing general banking needs.

The Sukuk offering is subject to approval from the relevant regulatory authorities and will be executed in compliance with applicable laws and regulations.

The announcement does not constitute an invitation or offer to purchase, own, or subscribe to any securities and is subject to the terms and conditions of the Sukuk.

The bank intends to disclose any significant developments as they occur, adhering to relevant regulations, the statement added.