Riyad Bank to Issue Saudi Riyal AT1 Sukuk to Bolster Tier 1 Capital

Riyad Bank plans to issue Saudi riyal-denominated Additional Tier 1 (AT1) sukuk under its existing SAR 10 billion program to strengthen its Tier 1 capital and support general banking operations. The proceeds from this issuance will be used to bolster the bank's capital base in compliance with Basel III arrangements while enhancing its ability to manage liquidity and support growth. This move follows Riyad Bank's previous successful sukuk offerings, including a SAR 2 billion AT1 issuance in January 2025 and a USD 750 million sustainable sukuk in September 2024, demonstrating the lender's ongoing strategy to optimize its capital structure through Shariah-compliant instruments. As Saudi Arabia's third-largest bank with significant government ownership, the issuance matters to investors and the broader financial sector as it reflects Riyad Bank's commitment to maintaining strong capital adequacy amid evolving regulatory requirements.