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Riyad Bank

Sells world’s first sustainability-linked AT1 Islamic bond

Issuance Details

  • Company: Riyad Bank
  • Rating (Fitch): N/A
  • Sector: Financial
  • Market: ISM

Transaction Details

  • Issue Date: 17 January 2022
  • Issue Size: $750 million
  • Coupon: 0.00 %
  • Maturity: –

Riyad Bank sells $750 million in perpetual sustainability sukuk

  • Riyad Bank is one of the largest financial institutions in Saudi Arabia and the Middle East
  • In January 2022, Riyad Bank sold $750 million in Additional Tier 1 (AT1) Islamic bonds linked to sustainability on London’s International Securities Market (ISM)
  • The world’s first sustainability-linked AT1 Islamic bond will be non-callable for five-and-a-half years and is marked as the world’s first sustainability linked AT1 Islamic bond.
  • Its yield was tightened from initial price guidance of around 4.375% after demand exceeded $3 billion
  • The deal was arranged by BofA Securities, HSBC, Riyad Capital and Standard Chartered

Source: London Stock Exchange, Refinitiv, May 2022