Riyad Bank has commenced the issuance of SAR-denominated sukuk through a private placement within Saudi Arabia as part of its 10 billion Saudi riyals ($2.66 billion) additional Tier 1 capital sukuk programme. 

The amount and terms of the sukuk offer will be finalised later based on market conditions.

The sukuk, which has a minimum subscription of SAR 250,000, will be open to institutional and qualified clients.

Riyad Capital will be the sole lead manager of the issue.

The expected closing date for sukuk is January 16, subject to market conditions.

The sukuk do not have a fixed or final redemption date. However, they may be redeemed in some cases, as detailed in the offering circular and the applicable final terms.

(Editing by Seban Scaria seban.scaria@lseg.com)