Riyad Bank Raises AT1 Sukuk Issue Size to SAR 10 Billion

Riyad Bank has announced the completion of the offer of its Additional Tier 1 (AT1) capital sukuk through an issuer announcement on the Saudi Exchange. EnterpriseAM reported a final issue size of SAR 10 billion, against the SAR 5 billion initially offered, after total subscriptions reached SAR 13.59 billion.

The Halal Times reported the opening of the subscription period in July. Riyad Capital’s offering page and Sahm Capital both put the initial offering at SAR 5 billion with a 6.5% annual profit rate, and both reported a subscription window running from 21 July to 3 August 2026. It’s the same offer whose increase in size EnterpriseAM has now reported.

How the Sukuk Is Structured

The instrument is structured as a Mudaraba and carries subordinated, unsecured status with no fixed maturity date, according to Riyad Capital’s offering page. Quarterly distributions are subject to cancellation, the offering page states, and the page also states that the bank may call the sukuk at its fifth anniversary or later, subject to the stated terms. Each sak was priced at SAR 1,000, Sahm Capital reported at launch, and the offer was made under Riyad Bank’s Additional Tier 1 Capital Public Sukuk Programme, which Sahm Capital reported has a capacity of SAR 10 billion. That programme capacity is a separate figure from the size of this issue.

The Rate and the First Reset

The sukuk pays a fixed 6.5% annual return, distributed quarterly, according to EnterpriseAM and Riyad Capital’s offering page. EnterpriseAM reported that the rate is set to reset every five years, with the first reset falling on 13 August 2031. Sahm Capital reported that the proceeds would go to the bank’s Tier 1 capital and to general banking purposes. Riyad Capital acted as financial advisor, sole arranger, and dealer on the offer, according to both its own offering page and Sahm Capital.

Readers can also find The Halal Times’ coverage of GCC sukuk issuance in the first half of 2026 and of Arab National Bank’s Tier 2 sukuk redemption. On this deal, EnterpriseAM, Sahm Capital and Riyad Capital’s offering page don’t explain why subscriptions ran so far ahead of the SAR 5 billion first put on the table, a starting size Sahm Capital reported at launch.

The first reset of the 6.5% rate is set for 13 August 2031, according to EnterpriseAM.

Frequently Asked Questions

What is the final size of Riyad Bank’s AT1 sukuk after the increase?

The final issue size is SAR 10 billion, against an initial SAR 5 billion, according to EnterpriseAM. That figure is separate from the SAR 10 billion capacity of the programme the offer was made under, which Sahm Capital reported at launch.

How much did investors subscribe for in the offering?

Total subscriptions reached SAR 13.59 billion, EnterpriseAM reported. That’s well above the SAR 5 billion initially offered, per the same report.

What profit rate does the sukuk pay?

It carries a fixed 6.5% annual return, payable quarterly, according to EnterpriseAM and Riyad Capital’s offering page, which states that the quarterly distributions are subject to cancellation. EnterpriseAM reported that the rate resets every five years, with the first reset due on 13 August 2031.

Is Riyad Bank’s AT1 sukuk secured, and does it have a fixed maturity date?

No. Riyad Capital’s offering page describes the sukuk as subordinated and unsecured, structured as a Mudaraba, with no fixed maturity date, and states that the bank may call it from the fifth anniversary, subject to the terms.

When did subscriptions for this sukuk open and close?

The subscription window ran from 21 July to 3 August 2026, according to Riyad Capital’s offering page and Sahm Capital. EnterpriseAM reported the increase in size on 11 August 2026, after the window had closed. Riyad Bank announced the completion of the offer through an issuer announcement on the Saudi Exchange.