Riyad Bank issues $1.5 billion sukuk on London Stock Exchange

Saudi Arabia’s Ambassador to the UK Prince Khalid bin Bandar attended the London Stock Exchange to celebrate the sukuk’s listing. (Twitter)

Riyad Bank, a Saudi Arabian financial institution, has issued $1.5 billion sukuk, a Sharia-compliant bond, on the International Securities Market of the London Stock Exchange, according to a document filed by the bank on Wednesday.

The bank received more than $7.6 billion in orders for the sukuk, Reuters reported, citing a document, with JPMorgan, Riyad Capital and Standard Chartered hired to lead the deal. First Abu Dhabi Bank and HSBC were also involved in the sale.

The sukuk was sold at a 3.174 percent fixed return rate per year with a 10-year tenure. The bank noted, however, that there was a five-year call date on the sukuk, meaning it could be redeemed before the 10-year maturity date.

Gulf financial institutions and governments across the region have upped their debt issuance in recent years to fund expansion and growth while taking advantage of record low global borrowing costs due to low interest rates.

Last Update: Wednesday, 20 May 2020 KSA 10:01 - GMT 07:01