PHOTO
Saudi Arabia’s Riyad Bank has started selling US dollar-denominated Additional Tier 1 (AT1) capital sustainable sukuk.
The perpetual non-call 5.5 year sustainable Mudaraba sukuk is being issued through a special purpose vehicle Riyad T1 Sukuk Limited under the bank’s $5 billion Additional Tier 1 Capital Certificate Issuance Programme.
The size of the issuance will depend on market conditions.
Initial price thoughts are in the 6% area, according to LSEG’s capital markets intelligence provider IFR.
BofA Securities, HSBC Bank plc, Kamco Investment Company, Mizuho International plc, Morgan Stanley & Co. International plc, Riyad Capital, SMBC Nikko Capital Markets Limited, Standard Chartered Bank and Warba Bank K.S.C.P.
The proceeds from the issuance will be used to finance and/or refinance, eligible sustainable projects as set out in the bank’s Sustainable Finance Framework.
The sukuk will be listed on the London Stock Exchange.
(Writing by Brinda Darasha; editing by Seban Scaria)
