Riyad Bank completes first offering of $1.5 bln Tier-2 sukuk

Riyad Bank completed the first offering of its international Tier 2 dollar-denominated sukuk worth $1.5 billion, the bank said in a statement to Tadawul on Tuesday.

The bank issued 7,500 sukuk at a par value of $200,000, based on the minimum denomination and total issue size.

The issuance pays a 3.174% fixed rate return annually, payable semi-annually on each periodic distribution date until Feb. 24, 2025 (the first call date). The return rate will be reset on the first call date.

The certificates will be settled on Feb. 25, 2020 (the issue date), Riyad Bank added.

In addition, these certificates may be early redeemed due to a capital disqualification event, tax reasons, or optionally on the periodic distribution date - 5 years after the issue date - and on each periodic distribution date thereafter, subject to the terms and conditions of the certificates.

The certificates will be listed on the London Stock Exchange (LSE). They may be sold in reliance on Reg S under the US Securities Act of 1933, as amended.

Riyad Bank will continue to complete all procedures necessary certificate issuance and allocation for investors, the statement concluded.

The bank announced on Feb. 18 the first issuance of its dollar-denominated international Tier 2 sukuk as part of its program to issue primary and secondary bonds, Argaam reported.