Riyad Bank, which is 43 percent indirectly owned by the Saudi government, has hired banks for a planned issuance of US dollar-denominated Additional Tier 1 (AT1) sukuk to support its capital base and meet financial and strategic needs, the lender said on Monday.
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HSBC, Riyad Capital and Standard Chartered will arrange investor meetings ahead of the planned debt sale, Riyad Bank said.
Additional Tier 1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual but issuers can redeem them after a specified period.
The AT1 sukuk will be sustainability-linked and non-callable for five and a half years, a bank document reviewed by Reuters showed. BofA Securities is also on the deal, the document showed.
The banks will arrange a global investor conference call on Monday, as well as other fixed income investor calls, the document said.
An issuance of benchmark size – typically at least $500 million – will follow, subject to market conditions.
“The amount and terms of offer of the Sukuk will be determined subject to the market conditions,” Riyad Bank said in a stock exchange filing.
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