Riyad Bank launches SAR 5 billion Tier 1 sukuk offering at 6.5% yield
Riyad Bank has begun offering SAR 5 billion in Tier 1 sukuk, with subscription open to institutions and individuals at a fixed annual yield of 6.5%.
Key Takeaways
AIRiyad Bank has announced the launch of its additional Tier 1 capital sukuk denominated in Saudi riyals, opening the subscription period for both institutional and individual investors. The initial value of the issuance has been set at SAR 5 billion.
According to Saudi Tadawul on its X platform account, the final value of the issuance will be determined after the offering period ends, based on prevailing market conditions.
The bank stated that the offering will continue until August 3, and the sukuk will be available to eligible natural and legal persons both within the Kingdom and in any jurisdiction where the offering is permitted by law.
Riyad Bank clarified that the minimum subscription is one sukuk, with a nominal value of SAR 1,000. Each sukuk is priced at SAR 1,000, offering a fixed annual yield of 6.5%, paid quarterly, subject to any cancellation in accordance with the terms and conditions. The bank added that the sukuk are perpetual instruments, subject to early redemption on the fifth anniversary of the issue date, as specified in the base prospectus and final terms applicable to the sukuk.
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