Riyadh Bank has announced the launch of a new issuance of Tier 2 credit certificates, denominated in US dollars, as part of its international program for issuing credit certificates, according to an official disclosure published on the Saudi Stock Exchange "Tadawul" site today, Monday.
This issuance comes as Riyadh Bank seeks to diversify its funding sources and expand access to qualified investors both locally and internationally, amid close monitoring from the financial markets of the surrounding pricing conditions.
Riyadh Bank indicated that the issuance will close tomorrow, Tuesday, noting that the final value and precise terms of this issuance will be determined later based on market conditions and investor reaction to the offering. This move is part of the bank's efforts to enhance long-term funding tools, especially with the certificates maturing in ten years, with an option for redemption after five years from issuance.
According to the disclosed details, the minimum subscription for these certificates is 200,000 US dollars, with the possibility of increasing by 1,000 dollars, while the nominal value for each certificate has been set at 200,000 dollars. This issuance reflects Riyadh Bank's commitment to providing advanced investment tools that meet the needs of qualified investors both inside and outside the Kingdom.
In organizing this issuance, Riyadh Bank has appointed a number of prominent international financial institutions to participate as underwriters, including "DBS Bank Ltd", "HSBC Holdings plc", "J.P. Morgan Securities plc", along with "Merrill Lynch International", "Mizuho International", "Riyadh Financial", "SMBC International", and "Standard Chartered Bank".
On the trading front, shares of Riyadh Bank (TADAWUL: 1010) are currently trading at levels of 29.06 riyals per share, and this announcement is expected to affect the upcoming trading of the bank's shares.
This issuance reflects the growing confidence in the financial situation of Riyadh Bank and its ability to attract liquidity from international debt markets, at a time when economic challenges are increasing globally. It also enhances the bank's position as one of the leading players in the Saudi banking sector in terms of financial diversity and long-term financing strategy.
