Riyadh, Saudi Arabia— Riyad Bank will begin to offer a new issue of sukuk on a private placement basis.
According to a stock exchange filing by the bank, the offering will be denominated in Saudi riyals, the size and offer price of the issuance are still undetermined and subject to market conditions.
The date of the offering is Dec. 31, 2022. Investors shall subscribe to a minimum of $66,533, with a return rate yet to be determined.
Riyad Capital will act as the sole lead manager and book runner for the potential Tier 1 capital sukuk offer.
The bank completed the offering of $750 million worth of US dollar-denominated sukuk to investors in February.
The issuance of 3,750 bonds was the first sustainable additional Tier 1 sukuk globally, having the lowest-ever credit spread achieved by a Gulf Cooperation Council bank for an AT1 sukuk of 4 percent.
Due to the bank’s strong track record, the order book was 4.3 times oversubscribed with demand peaking at $3.2 billion, mostly allocated to banks and fund managers.
It has chosen HSBC, Standard Chartered Bank, and Riyad Capital as joint global coordinators to manage the issuance.
Riyad Bank saw its profit rally by 10 percent to $842 million in the first half of 2022, despite incurring higher expenses.