By Fatima Al-Kashef

Riyad Bank, listed on the main market “Tadawul”, is moving to raise about 5 billion riyals ($1.3 billion) initially through the issuance of Tier 1 perpetual sukuk within a general sukuk program worth up to 10 billion riyals, according to the bank’s disclosure on “Tadawul” on Tuesday.

The issuance coincides with the expansion of the bank’s business, as its financing portfolio grew 6.5% year-on-year to approach 378 billion riyals by the end of the first half of 2026.

In brief: Bank details + Sukuk

(According to Riyad Bank's disclosure and financial statements)

- The bank offers bonds with a fixed annual return of 6.5%, payable every three months to institutions and individuals.
- The proceeds from the issuance will be used to strengthen Tier 1 capital and support its general banking purposes.
- The minimum subscription amount is one thousand riyals, and the offering will continue from Tuesday until August 3.
- The bonds can be redeemed starting from the fifth year.
Its terms allow for non-payment of distributions in specific cases, and their value can be reduced partially or wholly in the event of an event.
- The bank’s assets grew 8.5% year-on-year to SAR 533.6 billion by the end of June, while its financing and loan portfolio rose 6.5% to SAR 377.6 billion.
- The growth in financing was accompanied by a rise in customer deposits of about 10% to 348.3 billion riyals, while shareholders’ equity increased by 9.9% to about 67.5 billion riyals.
- The bank achieved net profits of 5.26 billion riyals ($1.4 billion) during the first half of 2026, an increase of 3.5% year-on-year.
- Riyad Bank, which is affiliated with the Public Investment Fund, was established in 1957 and has been listed on Tadawul since 1993.
- The bank has a presence outside Saudi Arabia through a branch in London, an agency in Houston, and a representative office in Singapore.

(Prepared by: Fatima Al-Kashef, Edited by: Yasmin Saleh, Contact: zawya.arabic@lseg.com)

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