Riyad Bank Targets SAR5B with AT1 Sukuk Sale

Riyad Bank launched a Saudi riyal-denominated Additional Tier 1 sukuk offering, aiming for an initial size of 5 billion riyals. The perpetual securities, callable after five years, will bolster the bank's capital base under Basel III requirements.

The sale comes as Gulf lenders lean on AT1 instruments to meet regulatory capital thresholds without diluting common equity. Saudi banks have been active issuers in the local bond market, with the sector funding both organic loan growth and the government's Vision 2030 infrastructure push.

Riyad Bank did not disclose the profit rate or final pricing date. The offering is expected to close in the coming weeks, with local and regional investors seen as the primary buyers. The sukuk marks the bank's first AT1 issue since it raised SAR3 billion in 2022.