Riyad Bank commences first issuance of dollar-denominated sukuk

Riyad Bank announced on Tuesday the first issuance of its dollar-denominated international Tier 2 sukuk as part of the bank’s program to issue primary and secondary bonds.

The bank said in a statement to Tadawul that the sukuk will be issued to qualified investors beginning today, Feb. 18, 2020, until Feb. 19, 2020, and the size of the issue will be determined in accordance with market conditions.

The bank has mandated J.P. Morgan, Riyad Capital, Standard Chartered Bank, HSBC, and First Abu Dhabi Bank to manage the offer.

The minimum subscription value is $200,000 (SAR 750,000) with increments of $1,000 (SAR 3,750) and the nominal value is $200,000, the statement said.

The certificates will have a tenor of 10 years and are subject to early redemption upon the occurrence of a capital disqualification event.

They shall also be redeemed early upon the occurrence of a tax event or subject to the option of the bank on the periodic distribution date falling on the fifth year or five-and-a-half years after the date of issuance.

According to data compiled by Argaam, Riyad Bank announced its intention to issue dollar-denominated international Tier 2 sukuk for a total value not exceeding $3 billion (SAR 11.25 billion).