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الاقتصادية
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Bank Riyadh raises 13.59B riyals via sukuk at 6.5%
Al-Riyad Bank raised a total of 13.59 billion SAR from issuing Tier 1 capital sukuk with a fixed annual return of 6.5%, paid quarterly. The issuance was over 2.7 times oversubscribed compared to the initial offering of 5 billion SAR, before the Bank decided to increase it to 10 billion SAR. The subscription encompassed 10 million sukuk, each with a nominal value of 1,000 SAR. These are perpetual sukuk, which can be redeemed starting from the fifth year, subject to specific conditions. The profit rate will be reset on August 13, 2031, and then every five years thereafter. This move is expected to strengthen the Bank’s financial position in the debt market, aligning with a record increase in Saudi banking profits, despite rising provisioning and slower loan growth.
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