Saudi Arabia's Riyad Bank has established a SAR 10 billion Additional Tier 1 local currency sukuk programme, enabling the lender to issue perpetual Shariah-compliant capital instruments on an ongoing basis to strengthen its capital position, support growth, and manage liquidity.
Riyad Capital is acting as sole arranger and dealer, with A&O Shearman and Khoshaim serving as legal advisers to the issuer. The bank most recently tapped the AT1 market in February 2026, issuing sukuk of SAR 187.7 million and SAR 1.25 billion. Its capital position remains comfortably above regulatory thresholds, with a Tier 1 capital adequacy ratio of 15.78% and a total capital adequacy ratio of 17.81% as of September 2025, against a minimum regulatory requirement of 11.079%.
Rated A stable by S&P Global Ratings, A- stable by Fitch, and A1 stable by Moody's, Riyad Bank's establishment of the programme reflects the continued appetite among Saudi lenders for Shariah-compliant capital market instruments as they position their balance sheets for sustained expansion under Vision 2030.
Gulf Economist Staff Writer