Saudi Arabia: Riyad Bank plans to establish a domestic SAR-denominated sukuk issuance program of up to SR10 billion ($2.67 billion), the bank said in a bourse filing today, Jan. 19, 2021.

The program's purpose is to issue and offer senior and/or subordinated sukuk, including the issuance of Tier 2 capital-eligible sukuk in one or more tranches, or through one issuance, or a series of issuances by way of private placement in Saudi Arabia.

The purpose of the program is to strengthen the bank's capital base, as well as support its financial and strategic needs.

Riyad Capital has been mandated as the sole arranger and dealer for the proposed sukuk program.

The bank will determine the number and value of the issuance of Tier 2 sukuk based on the market conditions.

The program will be subject to the competent regulatory authorities' approval and will be made in compliance with applicable laws and regulations.

Any other relevant material developments will be announced in due course as required by the applicable rules and regulations.