Riyad Bank has completed a sukuk offering in Saudi Riyals worth $533 million

Riyad Bank has completed a sukuk offering in Saudi Riyals worth $533 million

Riyad Bank, based in Saudi Arabia, has announced that it has successfully completed a sukuk offering worth $533.2 million (SAR 2 billion), as stated in a stock exchange report on Thursday.

Sukuk Offering

Riyad Bank, based in Riyadh, issued financial certificates called additional tier 1 sukuk under its $2.7 billion (SAR 10 billion) capital program, as per a filing on the Saudi Exchange (Tadawul).
A sukuk is a financial certificate similar to a bond but follows Islamic law.

The bank offered 8,000 sukuk bonds, each worth $66,648 (SAR 250,000), with an annual return of 6%. The settlement for the sukuk is set for January 23, 2025.
The offering started on January 7, 2025, through a private placement in Saudi Arabia.

Financial Performance

In November, Riyad Bank reported a 14.3% increase in revenue, reaching $1.2 billion (SAR 4.5 billion) for the first nine months of 2024.
The bank’s net profit after tax and Zakat rose by 27% to $707.6 million (SAR 2.7 billion) for the period ending September 30, 2024.
The bank also saw a huge 73.7% rise in its total income, reaching $861.2 million (SAR 3.2 billion).

Big Number

Riyad Bank’s total assets grew by 15%, reaching $115.5 billion (SAR 433.4 billion) compared to the previous year.

Global Outlook

The global sukuk market is expected to perform strongly in 2025, with total issuances projected to reach $190 billion to $200 billion, according to S&P Global.
Foreign currency sukuk is expected to add $70 billion to $80 billion to this total.

Published: 27th January 2025

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